Two days ago a draft bill was proposed to U.S. congress to try to regulate stablecoins by introducing a moratorium (Temporary Ban) on stablecoins that are backed by other cryptos (DIA is the biggest example.) while they conduct a study into them. The draft is available to read here:
This stems from major stablecoin problems in the past (terraUSD) because of the fear that it will happen again. However there is a few major flaws in there plan.
Just because they said they are temporarily banning stablecoins that are backed by other cryptos doesn't mean that anyone is going to stop using them because they can't enforce it. If they do decide to enforce it they would have to enforce it on millions of people which even for the US Government is nigh on impossible.
Secondly, to enforce it they would have to find out who made the transactions which is easier said than done because of the anonymity of crypto. The only clues they would have is a public blockchain address which won't lead them anywhere.
This means the only way for them to actually enforce the moratorium would be to check everyone's devices in person for activity of stable coin trading which would raise major red flags in society today.
Thirdly, if people wanted to be protected from these disastrous events they wouldn't be trading crypto in the first place.
Therefore, this is just another example of the US Governments total incapability of ever regulating crypto.
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This is was not intended to be investment advice! The article you have just read was written by an incompetent fool. Please always double check the facts and do your own research.
