Does the U.S. Stablecoin Bill Impact the Stablecoin USTC?

The U.S. Stablecoin Bill does not directly impact USTC.

USTC (TerraClassicUSD) is an algorithmic stablecoin that was once a stablecoin project on the Terra blockchain. However, in May 2022, due to algorithmic design flaws and a collapse in market confidence, it depegged from the US dollar, its price plummeted, and it is no longer an effective stablecoin. Currently, USTC retains the title of algorithmic stablecoin and serves as a commemorative artifact of algorithmic stablecoin experimentation. Although it circulates in the market, it is highly speculative and has become an arbitrage tool in the capital market, merely serving as a bargaining chip for both long and short positions.

The U.S. "Clarity for Payment Stablecoins Act" primarily establishes a regulatory framework for stablecoins "pegged" to the US dollar, requiring stablecoins to be backed by the US dollar or liquid assets such as US short-term Treasury bonds, and requiring issuers to disclose monthly details of stablecoin reserves. This bill primarily targets eligible, operating stablecoin projects. USTC no longer falls into this category and is therefore not directly affected by the bill.