Panic in the crypto market has Washington regulators' attention

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Investors in stocks, bonds and commodities are all on edge right now. But in the market for cryptocurrencies, unease has morphed into full-on panic, catching the attention of regulators in Washington.

WASHINGTON -- Investors in stocks, bonds and commodities are all on edge right now. But in the market for cryptocurrencies, unease has morphed into full-on panic, catching the attention of regulators in Washington tasked with maintaining financial stability.

Breaking it down: Making sense of the situation requires a quick primer on stablecoins and their wilder offshoot, algorithmic stablecoins. The boom helped spur the rise of algorithmic stablecoins like TerraUSD. These coins are technically worth $1, too. But they aren't backed by hard assets, and instead use financial engineering to maintain their peg.

 

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