Fed warns on crypto risks as major stablecoin breaks peg
The US Federal Reserve warned of the risks posed from stablecoins in its latest financial stability report, which was published the same day as a major stablecoin broke its peg to the US dollar.
TerraUSD, the fourth-largest stablecoin by market capitalisation, plunged in value on May 9 amid a widespread sell-off in the crypto market and broader financial markets. The stablecoin is down around 7% in the past day, having recouped some of its earlier losses.
TerraUSD’s inability to maintain a
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