BIS: No Stablecoin Peg Has Held
Ahead of HFSC Chairman McHenry’s push for new stablecoin legislation, the BIS today issued a report looking at 68 stablecoins and found that not a single stablecoin tied to fiat-currency or similarly-robust assets sustained parity with its peg at all times, regardless of size or type of backing. The paper also suggests that there is no guarantee that issuers of stablecoins would be able to redeem stablecoins on demand or in full and identifies younger coins and unbacked coins as more price volatile.
Gruenberg, Barr Say Agencies Must Work With Banks to Implement CRA Standards
Commenting today on CRA, FDIC Chairman Gruenberg indicated that he is looking forward to working with banks to “figure out” how to make the rule work in critical areas such as the retail-lending and community-development lending tests. Vice Chair Barr and Acting Comptroller Hsu also highlighted implementation challenges, but all strongly supported the rule as a major advance sure to support community development and modernize banking requirements.