- The US CRS puts out a report on the UST crash.
- Shows regulatory unfulfillment with stablecoins.
- New fork to be out by Terra LUNA.
The downfall of Terra’s UST and LUNA ought to be the hottest topic for the year 2022, so far. Amidst such unimaginable fall, regardless of the LUNA, the UST being a pledged stablecoin turned out to be the worst.
Besides, many even portrayed Terra LUNA to be a scam project and much more. In spite of all this, things got pretty serious, with people all around the globe losing millions and millions through both UST and the LUNA. Uttered to be a major calamity for the crypto industry, the hopes of UST and LUNA to spike up back seems not to happen at all.
With a huge population taking on the Terraform Labs for such massive losses, provoked the U.S Congressional Research Service (CRS) to take up certain initiatives. Indeed, the U.S CRS carried out a detailed study on the downfall of the UST.
US CRS Reports
Accordingly, the US CRS took over to cover up as much as they could through their extensive research on the downfall of UST. The U.S CRS is actually a research agency dedicated towards legislative processes and directly supports the U.S congress too.
In such conditions, taking the fall of UST into hands, the U.S CRS put out a detailed report and study analysis upon the current crash of the UST. Moreover, the U.S CRS denotes the carsh to be on the ‘run’ scenario.
In spite of this, the U.S CRS terms that the crash is ultimately due to the ‘run’ effect created by the users. Massive selling at fear turned out to dump the UST extremely.
Moreover, the U.S CRS states that there are huge spaces between the regulations put over the stablecoins. The regulatory framework is ok for the cryptocurrencies, but not for the stablecoins.
Besides, the co-founder of Terra, Do Kwon points out that they will be soon launching a hard fork based on the Terra LUNA blockchain itself. This new blockchain is to be termed, the LUNA Classic (LUNC).