A prominent crypto backer, Mark Cuban, called on the federal government to regulate the stablecoins’ market in a surprising development. This comes as he lost a handsome amount on the decentralized Iron Finance protocol.
Meanwhile, the decentralized platform said that its collateralized project was subject to a bank run, which prompted its local native token TITAN to lose more than 100 percent of its value in a couple of days.
On the other hand, while talking to a news outlet, Cuban took the blame on himself for not doing extensive research before investing. Plus, he also raised a few important points regarding the regulation of these projects. He said,
There should be regulations to define what a stablecoin is and what collateralization is acceptable. Should we require $1 in U.S. currency for every dollar, or define acceptable collateralization options, like U.S. treasuries.
Yet, Kraken’s head Jesse Powell took to Twitter, and while referring to Cuban, said that regulating the decentralized platform was not the main reason. He said not doing your research made it a bad investment option.
Not doing your own research and YOLOing in to a terrible investment because your time was worth more than your money is your problem. It's called gambling. Regulators are still trying to understand bitcoin 10+ years on. If you need the nanny state to hold your hand, you're NGMI. https://t.co/Rs34CHwDFO
— Jesse Powell (@jespow) June 17, 2021
This development comes as American lawmakers are formulating their plans to regulate the fast-growing sector of blockchain technology. Previously in December last year, the Stable Act was revealed, which called for the stablecoin issuers to get the bank charting as well as comply with financial institutions’ regulations.
Following last month’s fall of the crypto market, Jerome Powell, the Fed Reserve chair, called for the regulation of the evolving stablecoin sector.
