Crypto market is facing relentless pressure from regulators and policymakers on stablecoin issuers. First came VanEck’s spot Bitcoin exchange-traded fund rejection by the U.S. Securities and Exchange Commission on Nov. 12. The denial was directly related to the views that Tether’s stablecoin, USDT, was insolvent and concerns over Bitcoin’s price manipulation.
On Dec. 14, the U.S. Senate Banking, Housing and Urban Affairs Committee held a hearing on stablecoins focused on consumer protection and their risks, and on Dec. 17, the U.S. Financial Stability Oversight Council voiced its concern over stablecoin adoption and other digital assets. “The Council recommends that state and federal regulators review available regulations and tools that could be applied to digital assets,” said the report.
