Why Forcing Stablecoin Issuers to Hold All-Cash Reserves Is a Bad Idea
How should stablecoins be backed—by cash, or other assets too? This question about stablecoin reserves has been the subject of fierce debate among policy makers and crypto executives. Yet a long-awaited report on stablecoins barely addressed the topic. The report, from a President Biden working group that includes Treasury Secretary Janet Yellen and Fed Chair Jerome Powell, dropped earlier this month and was expected to provide clarity on how stablecoin issuers like Tether and Circle should back...