By: Biying Cheng*
Abstract
This paper examines the complexities of stablecoins, a type of cryptocurrency pegged to major fiat currencies for stability, before analyzing their classifications, mechanisms, and the challenges they face, such as the Terra/Luna crash and the USDC’s run following the Silicon Valley Bank collapse. Ultimately, run risk mitigation strategies are necessary, including regulatory guidelines and third-party audits, to bring stability in the stablecoin market
* Biying Cheng is a 3L J.D. Candidate at Cornell Law School.
Suggested Citation: Biying Cheng, Run Away From the Run Risk of Stablecoins, 129 Penn St. L. Rev. Penn Statim 19 (2024).