Lawmakers Call For Regulation After Terra Stablecoin Meltdown
- Policymakers say crash shows why guardrails needed for crypto
- TerraUSD backers trying to raise money to shore up token
This article is for subscribers only.
Lawmakers and regulators are renewing calls for new rules after a popular stablecoin lost its peg to the US dollar, putting investors and the market more broadly at risk.
TerraUSD, or UST, has plunged well below its $1 peg, leaving backers scrambling to shore up the token. They’re now trying to raise $1.5 billion to stabilize the coin, according to the founder of a firm that was approached about the deal. But so far they’re having a hard time winning over investors.