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Stablecoins: Legal Issues and Regulatory Options

  • CRS Legal Sidebar – Stablecoins: Legal Issues and Regulatory Options, Part 1 – June 9, 2022 -“…stablecoins—cryptocurrencies whose value is pegged to a reference asset like the U.S. dollar.While stablecoin issuers attempt to maintain these pegs in different ways, most of the regulatory attention has focused on coins that are putatively backed with reserves of assets denominated in fiat currency. Often, those assets underwrite an issuer’s commitment to redeem its stablecoins for a fixed value upon demand.
  • CRS Legal Sidebar – Stablecoins: Legal Issues and Regulatory Options, Part 2 – June 9, 2022 – “…Like banks and money market mutual funds (MMFs), stablecoin issuers are vulnerable to runs if their customers lose faith in the adequacy of the assets backing their demandable liabilities. Unlike banks and MMFs, however, most stablecoin issuers are not subject to federal regulations and protections designed to instill faith in those liabilities, such as deposit insurance and portfolio restrictions…”

 

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