The Terra collapse that led to investors losing over $40 billion has drawn the attention of investors, regulators as well as lawmakers to algorithm stablecoins, and now a bill to ban Terra-like stablecoins has been proposed by the US House of Representatives.
Beyond providing educative content and keeping ParadiseFamily up to date of the events in the crypto space, MyCryptoParadise dispenses to traders and investors personal trading signals in our ParadiseFamilyVIP, our Paradise Team is a group of experts with more than 6 years of experience in trading cryptocurrency, we make daily analyses of Bitcoin, Ethereum, and other popular altcoins, make the necessary adjustment on our positions to ensure it conforms with the recent market conditions.
What makes us unique?
Our uniqueness is in the deep understanding of markets, we are a professional trading company that offers both free and VIP membership to crypto traders and investors, and being able to follow every market event 24 hours, we have been positioned on the winning side of crypto traders, join our ParadiseFamilyVIP on Binance, OKX, Kucoin, Bitmex, and Bybit today, you’ll get life-changing information in cryptocurrency.
Here is what makes it juicier, you can get a 20% discount on your premium membership today, use PRO20% as your promo code before it expires, and click here for reviews from happy clients.
US May Ban Terra-like Stablecoins
The United States House of Representatives has drafted legislation that will see Terra-like stablecoins banned in the US for the next 2 years and regulatory agencies will be required to carry out a study of “endogenously collateralized” tokens.
According to the draft revealed by Bloomberg, it will be a criminal offense to create or issue new “endogenously collateralized stablecoins” in the United States.
Furthermore, the draft includes a provision of 2 years for the existing stablecoin issuers to amend their models and collateralize their offerings differently.
The word endogenous means something synthesized within the system, meanwhile, stablecoins like TerraUSD require their issuers to mint or burn Luna to stabilize the value of UST, creating stablecoins with similar backing will henceforth be prohibited in the US.
The earlier version of the bill required stablecoins creators to maintain a 1:1 liquid reserve for every stablecoin in the crypto space and would also limit the types of assets that could back them.
The latest draft—which Bloomberg notes is currently sitting with committee chair Rep. Maxine Waters (D-CA), and may need to be reviewed by ranking member Rep. Patrick McHenry (R-NC)—goes even further.
The bill also contains provisions that will let financial institutions issue stablecoins by working with the existing regulators, networks, including state regulators.
Join our telegram channels where we share our FREE updates and analysis on coins like BTC, ETH, and other trending altcoins. We also share our FREE secret insights, and FREE market updates.