House Financial Services Committee Chair Maxine Waters said she would prioritize a new stablecoin bill after the recent banking collapse that saw USDC fall from its dollar peg.

Representative Waters said that the passage of a stablecoin bill had been delayed by an expected change in the House majority to Republicans.

Stablecoins Face Fresh Scrutiny After SVB Collapse

She affirmed that she and Senate Banking Committee Chair Patrick McHenry were focused on new stablecoin legislation supported by Democrats and Republicans. 

The politicians’ comments come amid fresh scrutiny of the stablecoin industry after the collapse of Silicon Valley Bank. SVB held a portion of reserves used to back Circle’s USDC stablecoin. Stablecoins are kept at $1 through active arbitrage on exchanges globally. They rely on the backings of on-chain or off-chain assets to facilitate their minting and redemption.

USDC lost its peg to the U.S. dollar amid $1 billion in redemptions after the Federal Deposit Insurance Corporation took control of the bank on Friday, March 10, 2023. Circle later tweeted that attempts to withdraw $3 billion from the bank had failed.

Coinbase suspended USDC redemptions even as the token’s price plummeted, reaching $0.92 on Kraken at about 10.40 p.m. ET. 

Go to Source to See Full Article
Author: David Thomas

Did you like this?
Tip BTC Newswire with Cryptocurrency

• Bitcoin
• Bitcoin Cash
• Ethereum
• Litecoin
• Monero
• ZCash

Donate Bitcoin to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some bitcoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Bitcoin Cash to BTC Newswire

Scan the QR code or copy the address below into your wallet to send bitcoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Ethereum to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Ether:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Litecoin to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Litecoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Monero to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Monero:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate ZCash to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some ZCash:

Copy ZCash Address

[X] Click Here to Hide Donation Details