Pat Toomey, who sits on the Banking Committee, spoke about the distress faced by the IHR.
Toomey said that algorithmic stablecoins may not pose as much of a risk to the financial sector as a fully-reserved asset-backed stablecoins.
The Senator made a statement regarding the UST’s staying well below the US dollar rate. “It makes sense for this section on Terra to focus on stablecoins in general,” Toomey
told reporters. The Senator also defended tokens backed by assets such as cash and securities, stating that he does not see them as a risk.
“Failure should also be an option. It will probably take some failures in this area for the market to understand what works.”
Toomey recently submitted legislation regarding stablecoins.
