The Blockchain Association and the Chamber of Digital Commerce claimed to have been reviewed and consulted by U.S. policymakers following the collapse of TerraUSD.
The two lobbying groups representing leading crypto companies said lawmakers were questioning the structure of the UST to see if its collapse was avoidable and whether other stablecoins could suffer the same fate.
“The one thing we’ve been cautioning to the Hill is that we don’t want to accidentally throw the baby out with the bathwater because stablecoins we think are a critical piece of the crypto ecosystem going forward,” said Kristin Smith, executive director of the Blockchain Association.
The need for better regulation forced crypto companies to invest $9 million in lobbying in 2021. But, despite efforts to influence better regulation, fear of tough regulation has led crypto-investors to sell the risky assets.
Lobbyists urged lawmakers not to crack down too hard on the range of stablecoins. As the cryptocurrency market soared to $3 trillion in November, the scrutiny of policymakers also increased.
The sources for this piece include an article in Reuters.