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Experts warn Tether and USDC aren't true stablecoins due to risky asset backing and regulatory gaps.

Market News
20 May 2026
Blockonomi
View Source
Bearish
pluang ai news

Union Investment's Christoph Hock criticized Tether and USDC for holding significant gold and bitcoin reserves, arguing they don't qualify as genuine stablecoins. USDC experienced notable price drops in 2023 and 2024, highlighting stability risks. The Bank for International Settlements also warned that even Treasury-heavy reserves might not provide enough liquidity during mass redemptions. Regulators in the US and Europe are moving toward banking-level rules for stablecoin issuers to address these systemic risks.

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