undefined | Better HN

0 pointsEkaros8mo ago0 comments

That sounds like banking or payment processing. Albeit with later Paypal has proven that you do not always need to return funds, but still there is regulatory history on that...

Stable coins are new enough and have not catastrophically crashed yet so there is less oversight.

0 comments

DrBrock8mo ago

The Terra-Luna stablecoin crash wiped out $50 billion of notional value https://www.sciencedirect.com/science/article/abs/pii/S15446...

It's also a very open secret that the largest Tether stablecoin is not actually 1:1 backed with USD, as they very often claim https://paymentexpert.com/2025/07/24/tether-stablecoin-regul...

notatoad8mo ago

so the short answer to the question of "why crypto" is just to work around regulation, to be able to act as a bank without the regulations that apply to banks?

mondrian8mo ago

Yeah and this is codified in the GENIUS act which passed recently. It enables tech companies to act like banks in certain dimensions, without being regulated like banks.

notatoad8mo ago

ah, okay, i see the part i'm missing here. the GENIUS act doesn't let "tech companies" act like banks, it specifically lets stablecoin issuers act as banks. so this is stripe's play to take advantage of that.

1 more reply

boringg8mo ago

Stable coins are new enough .... and it's in their name... Stable! :)

j / k navigate · click thread line to collapse

0 comments

DrBrock8mo ago

The Terra-Luna stablecoin crash wiped out $50 billion of notional value https://www.sciencedirect.com/science/article/abs/pii/S15446...

It's also a very open secret that the largest Tether stablecoin is not actually 1:1 backed with USD, as they very often claim https://paymentexpert.com/2025/07/24/tether-stablecoin-regul...

notatoad8mo ago

so the short answer to the question of "why crypto" is just to work around regulation, to be able to act as a bank without the regulations that apply to banks?

mondrian8mo ago

Yeah and this is codified in the GENIUS act which passed recently. It enables tech companies to act like banks in certain dimensions, without being regulated like banks.

notatoad8mo ago

1 more reply

boringg8mo ago

Stable coins are new enough .... and it's in their name... Stable! :)

j / k navigate · click thread line to collapse