The Future Of Stablecoins May Be At Risk, According to Analyst Elliot Wainman
In the recent video, top trader Elliot Wainman from the popular Youtube channel EllioTrades Crypto discusses the recent fuds about stablecoins, one of the most important and critical resources in the entire cryptocurrency economy.
According to the trader, there has been not just a small growth in stablecoin usage. Since 2019, the actual role that stablecoins have played in the ecosystem has gone absolutely parabolic.
“What’s interesting about these markets is once stablecoins are issued, they’re typically very rarely taken out of circulation. Stable coins are a one-direction up only game,”
As Wainman says, stablecoins are very necessary part of the ecosystem. They’re also extremely profitable to own and maintain because traders can do money management on the money:
“Just sitting idle while your stable coins are out there being exchanged for real hard-earned cryptocurrency.”
Regulations on Stablecoins
As the cryptocurrency landscape is likely to be altered, at least somewhat, by regulations and new debates over whether bitcoin and its alternatives are securities or tokens, the same regulatory gaze might be tightening around stablecoins.
According to the analyst, U.S. Secretary of the Treasury Janet L. Yellen announced plans to discuss possible interagency work with regard to stablecoins.
The trader then states his long-term bullish view on this matter as he believes when there are some significant regulations in place, people know that they can operate in the light of day, in a regulated fashion .
“With Tether and USDC, I think these two assets are too big to fail and will most likely continue to exist and that we will see a period of them getting fully compliant instead of seeing them get shut down because obviously if you’re shutting down over 100 billion dollars in market activity that could cause systemic risk to crypto.”
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