Unchained The Legal and Regulatory Fallout From Terra's Collapse: Who Will Pay? - Ep. 363
Jun 14, 2022
Olta Andoni, Deputy General Counsel at Ava Labs, and Ari Redbord, Head of Legal and Government Affairs at TRM Labs, dive into the fallout from the Terra stablecoin’s collapse. They discuss the urgent need for regulatory action and how the incident might reshape the landscape for stablecoins, particularly the differences between algorithmic and dollar-backed assets. Key topics include potential criminal charges against Terraform executives, the importance of international regulatory consistency, and the implications of new U.S. legislative efforts on the future of stablecoin innovation.
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Distinct Questions
- The questions after Terra's collapse differ from those after Libra.
- Focus should be on preventing large-scale financial fraud, not just regulating stablecoins.
Stablecoin Regulation Focus
- Regulators are considering how to regulate stablecoins, driven by events like Libra's launch.
- A key concern is ensuring stablecoins are backed by adequate reserve assets.
Lummis-Gillibrand Bill and Algorithmic Stablecoins
- The Lummis-Gillibrand bill emphasizes stablecoin reserves, potentially banning algorithmic ones.
- Consider how this impacts innovation and different stablecoin structures.