The Washington Post, March 6, 2022, Opinion: ‘Stablecoins’ claim to be a safer cryptocurrency — but they’re far from risk-free
Ironically, it is the expectation that stablecoins will maintain a constant value that could make them dangerous during periods of stress. If at some point holders of stablecoins worry they won’t be able to convert their stablecoins into dollars, they might try to cash out quickly — perhaps a few owners at first, then many more, and soon there could be a widespread run on the coin.
The Treasury Department and U.S. financial regulators are prepared to use the tools we have to protect consumers from these potential risks, and know that many state regulators are working to do the same. But we urge Congress to enact legislation to ensure that stablecoins are subject to appropriate, comprehensive regulation.
