Gensler for a Day: How Rohan Grey Would Regulate Stablecoins

Gensler for a Day: How Rohan Grey Would Regulate Stablecoins
On paper, the concept of a “stablecoin” is relatively simple. Cryptocurrencies are notoriously volatile, and traders like being able to cash out quickly. Stablecoins are cryptocurrencies that allow for just that. Tied 1:1 to the price of a particular fiat currency (usually the U.S. dollar), they’re a way for traders to turn volatile crypto into highly liquid digital cash. The value of a dollar-pegged stablecoin is always just about a dollar – hence, “stable.”At least in theory. A chorus of regulators, politicians and academics has been raising the alarm about the potential instability and risk stablecoins represent to the broader…