Libertarians will argue this is a free market sorting out problems. But both regulators and regulated entities in the space are reasonably calling for more investigation and evaluation of how regulation can improve trust in the system.
There is no question that financial markets and regulators are currently working to manage turmoil in the cryptocurrency space.
Unfortunately, a recent string of high-profile bankruptcies and collapses of over 20 “stablecoins” whose peak market capitalisations were collectively over US$26 billion ($34.4 billion) has exposed many problems in the nascent ecosystem. Even one of the largest remaining stablecoin issuers — Binance — admitted to pooling company and client assets in issuing their stablecoins after the publication of a report written by one of the authors of this article.
