Since 2019, regulators around the globe have been seriously considering the potential risks of stablecoins. However, recent concerns, especially in the United States, have increased.

In November, the United States’ President’s Working Group on Financial Markets, or PWG, issued a key report, raising questions about possible “stablecoin runs” as well as “payment system risk.” The U.S Senate followed up in December with hearings on stablecoin risks.