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Lawmakers Call For Regulation After Terra Stablecoin Meltdown

May 11, 2022, 11:43 PM

Lawmakers and regulators are renewing calls for new rules after a popular stablecoin lost its peg to the US dollar, putting investors and the market more broadly at risk.

TerraUSD, or UST, has plunged well below its $1 peg, leaving backers scrambling to shore up the token. They’re now trying to raise $1.5 billion to stabilize the coin, according to the founder of a firm that was approached about the deal. But so far they’re having a hard time winning over investors.

“If Congress does not act in this space, then the danger is, at some point, a fiat-backed stablecoin ...