Bank Watchdog Says Terra Shows ‘Deep Vulnerabilities’ in Crypto

The collapse of the popular stablecoin TerraUSD highlighted “deep vulnerabilities” in the broader cryptocurrency market, a top US bank regulator said on Tuesday.

“The recent events in crypto should serve as a wake-up call and an opportunity to reset and to recalibrate the problems the industry is trying to solve,” Michael Hsu, the acting head of the Office of the Comptroller of the Currency, said at an event in Washington hosted by the Chamber of Digital Commerce.

Concerns about the resiliency of crypto markets have proliferated this month in Washington after TerraUSD, or UST, lost its peg to ...