GENIUS Act Leaves Stablecoins Exposed to Blockchain Runs
Fed paper models how rising gas fees can trigger stablecoin redemptions despite regulated reserves.
TLDR
CryptoSlate posted about a Federal Reserve paper on stablecoin risks under the GENIUS Act. The post states that a fully backed stablecoin can still face a run because the law regulates reserves but not the blockchain. Fed economists modeled scenarios where rising gas fees make small payments uneconomic and prompt abrupt exits when network effects are weak. The linked article describes how blockchain congestion can trigger redemptions or chain migration even with safe reserves.
Combined views
1.3K
1 Source, first seen 27d ago
1 likes