Billionaire investor Mark Cuban calls for regulation of the cryptocurrency market. For example, it wants to be defined “What is stablecoin and what security is allowed.”
Mark Cuban wants regulation
Investor, billionaire and supporter of DeFi technology, Mark Cuban, called for regulation of the stablecoin market after he lost money on investment in Iron Finance.
Iron Finance, a partially secured stablecoin project, was the subject “Historic banking panic”as a result of which its price dropped significantly.
By talking to Bloomberg on June 17, Cuban blamed himself for his “laziness” and insufficient research into the project he invested in. He also asked questions about the regulation of the stablecoin market.
– There should be regulations governing what stablecoin is and what safeguards are allowed. Should we require $ 1 in US currency for every dollar, or should we define acceptable hedging options (…) – He said.
It is not the lack of regulation that is the problem!
Kraken CEO Jesse Powell attacked him on Twitter, insisting that the lack of stablecoin regulation was not a problem. In his opinion, it is a matter of not carrying out “Own research”, so kind of blind investing.
The case, however, is controversial. The stablecoin sector is currently in the spotlight of US lawmakers as they wonder how to regulate a rapidly growing market. In December 2020, the law was analyzed that would require stablecoin issuers, inter alia, to compliance with traditional banking regulations.
After the cryptocurrency crash last month, Federal Reserve Chairman Jerome Powell stressed on May 20 that “As the use of stablecoins increases, we need to pay attention to the appropriate regulatory and supervisory framework.”
The collapse of stablecoin
Until now, stablecoins were considered to be “stable cryptocurrencies”, i.e. those whose exchange rate is always around USD 1 (the most famous solution is Tether).
The Iron Finance project after what happened to its stablecoin now plans to hire a third party to conduct an in-depth analysis of the protocol so that it can be “Understand all the circumstances leading to such a decline.”
IRON is a partially secured stablecoin. It is secured with a combination of its native TITAN token and USDC stablecoin.
After a massive sell-off by big investors, which saw TITAN’s price drop by around $ 30, the IRON stablecoin also dropped below $ 1.