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The Great Stablecoin Drama: Sonic Labs Says ‘No Thanks!’ to Algorithmic Chaos

BBG News

So, guess what happened yesterday? Sonic Labs—yes, the very same company with more ambitions than a toddler at a candy store—decided to throw their shiny algorithmic stablecoin dreams straight into the bin. 🙈 co-founder Andre Cronje mentioned something about increasing regulatory scrutiny in the U.S. Seriously, who didn’t see that coming? It’s almost like predicting rain in London.

Back in mid-March, they were all revved up to launch their fancy stablecoin, but, surprise, surprise! The government decided to play parent and established a whole set of rules more stringent than my mother’s rules about bedtime. 💤

The change came on the heels of the STABLE Act—no, not a fancy new bar in town, but a document laying down the law for digital assets and suggesting a *two-year* timeout for algorithmic stablecoins. Thank you, next! 🎤

Cronje took to social media (because where else would you go to share your existential crises?) to tell the world, “We are no longer pursuing a USD-based algorithmic stablecoin.” Sorry not sorry, stablecoin enthusiasts!

Meanwhile, the U.S. government is kicking their regulation game into high gear, with the GENIUS Act and STABLE Act getting their moment in Congress. Picture it: legislators arguing like children over the last cookie, but instead, it’s about what’s essentially a digital piggy bank. 🐷💰 Full reserve backing? In! Algorithmic models? Out. It’s like a financial version of “Survivor.”

Lobbyists are doing the tango to ensure the GENIUS Act takes the lead in this little regulatory dance-off, all while lawmakers are trying to play it cool and finalize regulations in two months. Meanwhile, the likes of Tether, Circle, and Ripple are elbowing for a front-row seat to the show, helping to shape how the U.S. plans to keep the dollar on its throne. 👑

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2025-03-29 10:39

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