Market collapse is not so rare in the crypto market, however the recent crypto meltdown has left many in heavy losses. The Terra collapse created a wave of the downturn in the prices of other digital assets, including the flagship currencies, which experienced a steep dip in their prices.
Looks like Crypto-hesitant Washington is fed up like two American senators, one Republican and one Democrat, have put forward a proposal that aims to create a regulatory framework around the cryptocurrency industry. However, other Congressmen are eyeing for more limited legislation.
It is also interesting to see that the crypto industry is showing its cooperation.
Terra was not begged by any real assets for the uninitiated, but was an algorithmic stablecoin. However, the rise of Terra attracted many investors, including highly experienced cryptocurrency experts.
Billionaire Mike Novogratz was among them, who even did the tattoo of Luna on his upper arm and a wolf howling at the moon.
Michael Estrabillo, too a “Lunatic” trusted his crypto investments to stable gains. On May 9, he gets the information that his money was locked in Terra.
Estrabillo said that if he had even a bit of idea that the currency he is getting into is algorithm-backed, he would never invest in it.
Meanwhile, it looks like Washington, too, has woken up to the fact that finance has now become mainstream and can not be further neglected.
The total value of digital assets is below $1.3 trillion, which hit a peak of $2.8 trillion last November, as per the data from CoinGecko. Moreover, according to a survey, 40 million people have invested in digital assets, or 16% of adult Americans. Fidelity Investments, a retirement account giant, now has included crypto in its 401(k) plan. Senator Cory Booker has also highlighted that cryptocurrencies are more popular among Black Americans in many instances.
After the Terra crash, Circle issued USD coins, and Tether, created by Bitfinex, are the two remaining major stablecoins. Besides, there are several smaller stablecoin issuers.
In an interview, Jeremy Allaire, founder and CEO of Circle, stated that “It’s not just urgent that Washington step in, it’s urgently urgent,”
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2022/06/08/washington-gets-wakeup-call-after-recent-crypto-crash/