US regulator warned of potential USDT vulnerability
According to OCC chief Michael Hsu, it is necessary to introduce the regulation of the stablecoins market to prevent risks
31.05.2022 - 06:40
319
2 min
0
What’s new? The Tether (USDT) stablecoin may not be a safe means of storing capital. According to Michael Hsu, the head of the US Office of the Comptroller of the Currency (OCC), without regulation USDT has the same vulnerability as the previously collapsed algorithmic stablecoin TerraUSD (UST). He said this in an interview with CNBC.
The full version of the interview
What statements have been made? Michael Hsu opined that the rate collapse of the UST stablecoin and its backing LUNA token revealed deep vulnerabilities in the cryptocurrency ecosystem. While USDT is a centralized stablecoin and backed by assets, it is also subject to risks, Hsu stressed.
Investors should not take lightly the fact that USDT faced the loss of its peg to the US dollar at the same time as UST did. In order to eliminate these vulnerabilities, it is necessary to regulate the stablecoins market, Hsu added.
What events happened before? On May 12, the USDT stablecoin began to lose its peg to the US dollar, its rate dropped to $0,95. Tether CTO Paolo Ardoino said on his official website that the company would continue to redeem assets for dollars at a one-to-one ratio. On May 13, Tether stabilized its peg to the dollar by burning 3 billion USDT. The developers used a special Tether Treasury account to destroy the tokens.
On May 8, the rate of the algorithmic stablecoin UST lost its peg to the dollar and dropped to $0,22 over the following days. The LUNA token rate also collapsed by 86% per day. For a full timeline of the events surrounding the rate collapse of UST and LUNA, see GetBlock Magazine’s special feature.
Useful material?
Telegram 
Twitter Technologies
Network fees will be integrated into the cost of swaps
Nov 22, 2024
Market
The company’s unrealized profits from investing in its first cryptocurrency approached $14 billion
Nov 19, 2024
Incidents
The search, the reason for which was not announced, took place a week after the election, the results of which Polymarket users predicted quite accurately
Nov 14, 2024
Market
Analysts point to the growing popularity of the first cryptocurrency as a safe haven asset
Nov 13, 2024
Market
The product will begin trading on the Swiss Exchange on November 19
Nov 12, 2024
Market
The company’s unrealized profits from investing in the first cryptocurrency approached $13 billion
Nov 12, 2024
Cryptocurrency rates
-
Bitcoin
$98 569
BTC
+0.57%
-
Ethereum
$3 338.74
ETH
+0.53%
-
BNB Smart Chain
$579.4
BSC
+1.23%
-
Ripple
$1.58
XRP
+16.32%
-
Dogecoin
$0.40708
DOGE
+6.42%
-
Cardano
$1.12
ADA
+32.36%
-
Stellar XLM
$0.433984
XLM
+52.14%
-
Bitcoin Cash
$516.83
BCH
+5.87%
-
Polkadot
$7.06
DOT
+16.26%
-
Litecoin
$97.21
LTC
+7.89%