Systemic ‘Bank Run’ Risk Hangs Over Stablecoin Bills in Congress

The current excitement about one of the safest corners of the cryptocurrency markets is bringing up bad memories of previous crises.

The Trump administration and Congress are both pushing to cement the growing importance of stablecoins, the digital tokens that are supposed to maintain a steady value with backing from traditional assets.

Two bills traveling through the House and Senate are designed to give stablecoins a bigger role in the global payments infrastructure, with vocal support from President Donald Trump. The interest from Washington has helped encourage the steady flow of new money into the sector — even as other ...