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Market Turbulence Leads to Urgent Call for Stable Currency Legislation

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Market Turbulence Leads to Urgent Call for Stable Currency Legislation

It is reported that the market turbulence caused by the collapse of the Silicon Valley Bank briefly led to the breaking of the link between the USDC stable currency of Circle and the US dollar. In response, the management team of the stable currency issuer has called on the US Congress to urgently pass the stable currency legislation. In an interview with Jennifer Schonberger of Yahoo Finance, Maxine Waters, chairman of the House Financial Services Committee, said that the legislation might be passed in a few days, and suggested that the delay was due to the fear of which party would control the House of Representatives.

US Congressman: The US may pass the stable currency legislation in a few days

Analysis based on this information:


The recent collapse of the Silicon Valley Bank has caused widespread market turbulence, leading to knock-on effects on other businesses and investors. The incident has even briefly broken the link between the USDC stable currency of Circle and the US dollar. To address this issue, the management team of the stable currency issuer has urgently called on the US Congress to pass stable currency legislation.

Maxine Waters, the chairman of the House Financial Services Committee, has revealed in an interview with Jennifer Schonberger of Yahoo Finance that the legislation might be passed in a few days. The delay, according to Waters, is due to the fear of which party would control the House of Representatives. This news highlights the importance of stable currency legislation and the sensitivity of the political environment surrounding it.

With the rise of cryptocurrencies and the increasing use of stable currencies in everyday transactions, a clear legal framework is needed to regulate their use. Stable currencies are often used as a medium of exchange in DeFi (decentralized finance) transactions and as a hedge against market volatility. However, without proper legislation, these currencies can be subject to fraud, manipulation, and hacking.

The USDC stable currency of Circle is a clear example of the importance of stable currency legislation. Circle’s stable currency is backed by a reserve of assets, which helps to maintain its value in relation to the US dollar. However, as seen with the market turbulence caused by the Silicon Valley Bank collapse, the value of the USDC can still be affected by external events. A clear legal framework would provide greater stability and confidence for investors and businesses alike.

In conclusion, the urgent call for stable currency legislation by Circle’s management team and the potential passing of the legislation in a few days by the US Congress highlights the growing importance of stable currencies in the modern financial landscape. The sensitivity of the political environment surrounding the legislation demonstrates the need for a clear legal framework to regulate the use of stable currencies. Investing in stable coins and trading them via DeFi protocols is a mainstream topic, and proper regulations should be applied.

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