Stablecoins Bring Crypto to the Mainstream. What Could Go Wrong?
Legislation to regulate dollar-linked tokens would tie digital assets into the broader financial system. That’s a big deal, say boosters and critics alike
Illustration: Derek Abella for Bloomberg Markets
Stablecoins had once seemed like yesterday’s news. Now they’re a Washington obsession.
Stablecoins are a special flavor of cryptocurrency. Unlike Bitcoin or countless wildly traded memecoins, whose values rise and fall based on market moods, the most popular versions of these digital tokens are supposed to always be worth $1 each. They greased the wheels of the pandemic-era crypto boom by giving traders a digital substitute for cash. Advocates touted them as the future of money. After the collapse of the FTX crypto exchange in 2022, however, they fell off many people’s radar, along with the rest of crypto.