US Congressman Maxine Waters: There are a lot of stablecoins that don't have all the reserve assets to back them up

On February 9, the U.S. House of Representatives Financial Services Committee held a hearing on stablecoin regulations on Tuesday, aiming to better understand the risks that may be seen in the development of stablecoins, and which regulatory framework can best address these issues. In her opening remarks, Rep. Maxine Waters (CA-43) discussed the potential risks of stablecoins to the economy and community, while also highlighting the opportunities it presents to the financial system. “Investigations have shown that many of these so-called stablecoins are not actually backed by full reserve assets,” Waters said. “And, due to speculative trading and inadequate investor protection, stablecoins may even threaten our financial stability.”