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Yellen Says Terra Meltdown Shows Crypto-Stablecoin Dangers

  • Treasury Secretary cites rapid growth of tokens pegged to USD
  • Not yet ‘real threat to financial stability,’ she says
Janet Yellen
Janet Yellen

Photographer: Tom Williams/CQ Roll Call/Bloomberg

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Treasury Secretary Janet Yellen gave the US government’s most forceful response yet to the meltdown of TerraUSD, saying that the crypto stablecoin’s woes underscore the risks associated with the asset class.

Yellen said on Thursday that Terra’s spectacular tumble shows the dangers of tokens that purport to be pegged to the US dollar. She called for new regulations and added that Treasury was working on a report about the issue.