Treasury Secretary Janet Yellen called for swift passage of the Stablecoin Act amid the UST’s deviation from the dollar peg.
“Stablecoin, known as TerraUSD, has experienced a massive withdrawal of assets and has declined in value. I think this confirms that we are dealing with a rapidly growing product that has inherent rapidly growing risks,” she said.
Senator Pat Toomey, in turn, drew the minister’s attention to the distinction between collateralized and algorithmic steblecoins.