The tragic incidents of Terra (LUNA) and TerraUSD (UST) caught the attention of the whole world, including the Secretary of the United States (US) Treasury, Janet Yellen.
In yesterday’s hearing before the Senate Banking Committee, Yellen called for creating a stablecoin policy and framework should be in place as early as the end of the year.
The call from the former chairman of the Federal Reserve (The Fed) stems from Terra's stablecoin, UST which has depreciated below $ 1, causing it to no longer be tied to the US dollar.
Clearly Yellen, this incident is enough to prove that the rapid growth of a product will be accompanied by high risk:
“That is why we need to have a consistent federal framework… We will issue a full report in the near future.
For the record, Yellen’s proposal reflects U.S. president Joe Biden’s approval of the executive order signed in March.
Terra, UST, and LUNA - rug pull?
LUNA and UST recorded each other's price declines since Friday, before each showing no sign of rebounding.
Based on the article on the fate of the two native Terra assets published earlier, it is still unclear to describe this experience as a rug pull.
Terra CEO Do Kwon last night posted a positive tweet: "Very few more will announce recovery plans for UST."
But until now there has been no news of relief. Instead Kwon just asked LUNA and UST investors to be patient.
