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Why Regulators Recently Pay a Close Attention to Stablecoin

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In a case of any event when the financial market crashes across the board, Tether and Circle could be 10 to 20% short of dollars it needs for its customers to cash out in a timely manner. While Paxos won’t.

As a conclusion, regulators have the reason to feel concerned! Since if there would be a huge sell pressure of stablecoins which have no physical dollars behind,

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And if those dollars were already invested in the regular market such as the housing market with home equities, This would crash the housing market and bring the stock market down with it.

This might be a risk sooner, if we consider the fiat stablecoin companies growing rate.

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