Lawmakers in Washington D.C. and across the world are trying to figure out how to establish laws and guidelines to make cryptocurrency safer for investors and less appealing to cybercriminals, so expect continued conversations about cryptocurrency regulation.
U.S officials have shown a particular interest in stablecoin regulation, especially following the recent Terra Luna crash. In May, crypto markets went into a freefall that led stablecoins TerraUSD (UST) to depeg from the dollar, which in turn, caused its linked cryptocurrency Luna to crash as well. As of a result, many Terra and Luna investors saw their investments vanish in a matter of days. Within a few weeks of Terra’s downfall, the crypto market plunged again and several crypto companies announced layoffs and froze withdrawals to slash costs due to the extreme market conditions. Some companies like Three Arrows Capital and Celsius have since filed for bankruptcy
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