The United States Treasury Department is reportedly getting ready a assessment highlighting demanding situations posed via way of means of stablecoin redemptions and the impact of a likely run at the crypto asset marketplace.

According to a Sept.1 file from Bloomberg mentioning nameless sources, Treasury officers are readying coverage tips designed to make sure stablecoin holders can freely convert among their tokens and different belongings.

The file states the lawmakers desire to mitigate “the maximum pressing risks” related to Tether (USDT) and different solid tokens, additionally emphasizing the threats of a “fire-sale run” on crypto belongings may want to wreak for economic balance broadly.

Critics have lengthy scrutinized Tether’s redemption method and backing and feature observed it wanting, with a few holders claiming to had been not able to redeem USDT for fiat the use of the company’s internet site over the years.

After years of failing to supply promised audits, Tether has these days posted attestation reviews claiming its stablecoin is subsidized via way of means of $62.6 billion in belongings — 49% of that is industrial paper, even as coins and financial institution deposits compose simply 10%.

While Treasury officers reportedly are maximum worried approximately Tether, the as soon as hegemonic repute of USDT over the stablecoin markets has been waning — with the token’s relative marketplace proportion receding via way of means of 25% because the begin of 2021.

After beginning the yr representing kind of 76% of stablecoin capitalization, Tether’s dominance over the arena has fallen via way of means of one-region to symbolize 56.5% of the mixed stablecoin marketplace capitalization today, consistent with CoinGecko.

This yr has visible USD Coin (USDC) and Binance USD (BUSD) seize big marketplace proportion amid Tether’s decline, with USDC and BUSD developing from 13.7% and 3.40% of stablecoin capitalization to 23.9% and 10.4% today, respectively.

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Decentralized solid tokens have additionally proven remarkable increase all through 2021, with TerraUSD (UST) developing from 0.65% to 2.11%, even as MakerDAO’s Dai elevated from 4.23% to 5.13%.

CoinGecko’s information additionally notes a decline withinside the marketplace proportion of Paxos Dollar (USDP), which contracted from 1.15% to 0.85%. However, each stablecoin tracked via way of means of CoinGecko noticed its usual marketplace cap develop all through 2021.