{"id":10073,"date":"2021-09-17T06:31:06","date_gmt":"2021-09-17T05:31:06","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=10073"},"modified":"2021-09-17T06:31:14","modified_gmt":"2021-09-17T05:31:14","slug":"us-treasury-department-is-keen-on-stablecoin-crackdown","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/us-treasury-department-is-keen-on-stablecoin-crackdown\/","title":{"rendered":"US Treasury Department is keen on stablecoin crackdown"},"content":{"rendered":"\n
The US Treasury Department is still planning a stablecoin crackdown<\/a>, although, stablecoin Tether\u2019s dominance has fallen to 56%, USDC and BUSD have surged to 23.9% and 10.4% respectively.<\/h5>\n\n\n\n
\"US<\/figure>\n\n\n\n

The US Treasury Department\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> is preparing a review that will focus on the issues created by stablecoin redemptions as well as the impact of a prospective run on the crypto asset market.<\/p>\n\n\n\n

Treasury officials are preparing regulatory proposals, according to a Sept. 16 Bloomberg article citing unidentified sources, to ensure stablecoin holders can freely convert between their tokens and other assets.<\/p>\n\n\n\n

The lawmakers seek to alleviate “the most pressing vulnerabilities” linked with Tether (USDT) and other stable tokens, according to the report, while also underlining the dangers a “fire-sale rush” on crypto assets could have to financial stability in general.<\/p>\n\n\n\n

Tether's redemption process and backing have long been criticized, with some users claiming to have been unable to convert USDT to cash using the company's website over the years.<\/p>\n\n\n\n

Tether has issued attestation reports saying the stablecoin is backed by $62.6 billion in assets, 49 percent of which is commercial paper and just 10% in cash and bank deposits<\/a>, after failing to deliver promised audits for years.<\/p>\n\n\n\n

While Treasury officials are apparently particularly concerned about Tether, USDT's once-dominant position in the stablecoin markets is eroding, with the token's relative market share falling by 25% since the start of 2021.<\/p>\n\n\n\n

According to CoinGecko, Tether's dominance over the stablecoin sector has plummeted by one-quarter to 56.5 percent of the total stable token market cap today, down from 76 percent at the start of the year.<\/p>\n\n\n\n

During Tether's collapse this year, USD Coin (USDC) and Binance USD<\/a> gained significant market share, rising from 13.7 percent and 3.40 percent of stablecoin capitalisation to 23.9 percent and 10.4 percent, respectively.<\/p>\n\n\n\n

Decentralized stable tokens grew significantly in 2021, with TerraUSD increasing from 0.65 percent to 2.11 percent and MakerDAO's DAI rising from 4.23 percent to 5.13 percent.<\/p>\n\n\n\n

According to CoinGecko's data, Paxos Dollar's market share has decreased from 1.15 percent to 0.85 percent. During 2021, however, the overall market cap of every stablecoin tracked by CoinGecko increased.<\/p>\n","protected":false},"excerpt":{"rendered":"

The US Treasury Department is still planning a stablecoin crackdown, although, stablecoin Tether\u2019s dominance has fallen to 56%, USDC and BUSD have surged to 23.9% and 10.4% respectively. The US Treasury Department is preparing a review that will focus on the issues created by stablecoin redemptions as well as the impact of a prospective run […]<\/p>\n","protected":false},"author":12,"featured_media":10079,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[906,1531,2223],"class_list":["post-10073","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-crackdown","tag-stablecoin","tag-us-treasury-department"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2021\/09\/US-Treasury-Department-is-keen-on-stablecoin-crackdown-scaled.jpeg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/10073","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=10073"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/10073\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/10079"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=10073"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=10073"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=10073"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}