Tether came under mounting strain, pushing the price of one of the most important assets in global crypto markets well below its $1 peg. The fall in the price of Tether to more than 3% below its $1 peg ricocheted across the digital asset market. Earlier this week, the algo stablecoin Terra USD also lost its dollar peg.
Regulators have cited stablecoins, which are largely unregulated in most markets, as a risk to financial stability. The Federal Reserve said earlier this week that just three stablecoins, Tether, USDCoin and Binance USD, make up 80% of the $180 billion market.