The US Federal Reserve is pointing to the recent collapse of TerraUSD and other algorithmic stablecoins as examples of financial stability risks. In its June 17 monetary policy report, the Fed noted stablecoins among financial stability risks. Though the Fed has expressed concerns over stablecoins in the past, it now has ammunition to cite, referring to "The collapse in the value of certain stablecoins and recent strains experienced in markets for other digital assets demonstrate the fragility of such structures." The most notable collapse was of TerraUSD (UST) and linked cryptocurrency Luna, which dropped over $40 ... (full story)