Aliens TLDR

Michael Hsu, acting director of the Office of the Comptroller of the Currency, told attendees at the DC Blockchain Summit that the fallout from the stablecoin UST’s de-pegging from its one-to-one standing with the US dollar should “serve as a wake up call and an opportunity to reset and recalibrate the problems the industry is trying to solve.” It was promising that there was no contagion to the banking system as a result of the de-pegging, Hsu said, but this further highlights the need for safe havens outside of crypto.

“No banks are under stress, or even rumored to be under stress due to crypto exposure,” Hsu said.

“This absence of stress has allowed the traditional banking system to remain a source of strength to households and businesses in the recent financial market volatility.” Yield farming — in which cryptocurrency holders stake their assets in exchange for fixed-income-like returns — associated with UST was particularly alarming, Hsu said.