Regulators Express Concerns With Stablecoins, Tether Plunges $10B

According to a report from CNBC, Tether has seen its circulating supply plunge from a record $84 billion on May 11 to around $73 billion as of Monday. Investors have yanked more than $10 billion out of tether in the past two weeks alone.

Tether is the world’s largest stablecoin and has seen its circulating supply plunge from a record $84.2 billion on May 11 to around $73.3 billion as of Monday.

According to CNBC, the fallout from the collapse of Terra, the blockchain behind UST and luna, sent shockwaves through the crypto market, with bitcoin and other cryptocurrencies tumbling sharply. That’s causing concern for regulators.

“Whenever there’s a failure or a catastrophe in crypto, the fear is always that someone will misread the situation and overcorrect in a position that’s not helpful for the entire community writ large,” Kathleen Breitman, a co-creator of the Tezos blockchain, told CNBC.

“As much as I relish seeing things that don’t make sense fail, there’s always a tinge of like, ‘Are people going to extrapolate from this that everything that’s a stablecoin is unsound?’ That’s always the big fear.”

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