Stablecoins’ recent depegging is not a ‘real threat to financial stability,’ says Janet Yellen
2022.05.12 23:20
Stablecoins’ recent depegging is not a ‘real threat to financial stability,’ says Janet Yellen
According to United States Treasury Secretary Janet Yellen, the stablecoin market is not at the scale at which the drop in the price of TerraUSD (UST) and Tether (USDT) below $1 would present a threat to the country’s financial stability.
In a Thursday hearing of the House Financial Services Committee on the Financial Stability Oversight Council’s Annual Report to Congress, Yellen hinted that the stablecoin market was not yet at a size in which UST dropping to under $0.40 and USDT — the largest stablecoin by market capitalization — briefly depegging from the dollar to hit $0.96 would create a “real threat to financial stability.” The Treasury Secretary cited a November report from the President’s Working Group on Financial Markets and said the council was currently analyzing “potential financial stability risks” in the digital asset space.
