USDC Stable Currency Link to US Dollar Briefly Broken Due to Silicon Valley Bank Collapse – Call for Urgent Stable Currency Legislation

03/15/2023 23:03 • Tech Ticker • 271 views

It is reported that the market turbulence caused by the collapse of the Silicon Valley Bank briefly led to the breaking of the link between the USDC stable currency of Circle and the US dollar. In response, the management team of the stable currency issuer has called on the US Congress to urgently pass the stable currency legislation. In an interview with Jennifer Schonberger of Yahoo Finance, Maxine Waters, chairman of the House Financial Services Committee, said that the legislation might be passed in a few days, and suggested that the delay was due to the fear of which party would control the House of Representatives.

US Congressman: The US may pass the stable currency legislation in a few days

Analysis based on this information:

The USDC stable currency of Circle was reportedly briefly detached from its link to the US dollar due to the market turbulence caused by the collapse of the Silicon Valley Bank. This led the management team of the stable currency issuer to call on the US Congress to enact stable currency legislation urgently. In response, Maxine Waters, the chairman of the House Financial Services Committee, stated in an interview with Yahoo Finance that the legislation may be passed soon, but the delay is attributed to the fear of which party might control the House of Representatives.

This message highlights the critical problem of stable currency in the context of market turbulence. Stable currencies are designed to maintain their value with external forms of backing, such as the US dollar or gold, in order to reduce price volatility. However, the collapse of the Silicon Valley Bank has had a direct impact on the USDC stable currency’s link to the US dollar, leading to a breach in stability. This breach emphasizes the critical need for stable currency legislation, which will provide more robust and enforceable regulatory policies to manage and protect the stability of cryptocurrencies amid market turbulence.

The message indicates that the management team of Circle understands the importance of stable currency legislation and has taken initiative to call out to the US Congress for urgent action. Furthermore, the statement of Maxine Waters, the chairman of the House Financial Services Committee, suggests that there is a growing recognition of the importance of stable currency legislation in Congress.

However, the delay in passing the legislation is attributed to the fear of which party might control the House of Representatives. This reflects the current political climate and the complexities of passing regulatory policies. The delay shows that the passage of legislation is often influenced by political considerations rather than solely driven by the urgent need for regulatory protection.

In conclusion, this message highlights the need for stable currency legislation in the context of market volatility. It underscores the difficulties of passing regulatory policies in the current political landscape. Finally, it emphasizes the need for stable currency issuers, users, and stakeholders to continue advocating and pushing for regulatory policies that provide protection and stability in the cryptocurrency market.

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