The turmoil of stablecoins has sparked regulatory follow, with many countries accelerating the regulation process for encryption assets.

Recently, the collapse of a certain algorithmic stablecoin has triggered severe turbulence in the cryptocurrency market, and its impact has spread beyond the encryption field. This event has caused regulatory agencies in various countries to once again turn their attention to the crypto market and begin taking corresponding measures.

In early May, a dollar algorithm stablecoin operating on a certain blockchain experienced a severe de-pegging phenomenon. The stablecoin, which was originally pegged to the dollar, dropped to a low of $0.04 in just 5 days, with a de-pegging rate of up to 97.7%. Another token associated with it also briefly fell to a price close to zero, whereas this token had been priced at $119 just a month ago.

As predicted by the CEO of a certain encryption company, "the collapse of stablecoins and other tokens has provided momentum for legislators to accelerate encryption regulation." This prediction was quickly validated.

On May 17, the South Korean financial regulator launched an emergency inspection of local cryptocurrency exchanges. Meanwhile, the Federal Reserve mentioned the stablecoin issue in its latest financial stability report. The U.S. Treasury also revisited legislation regarding stablecoins, while the U.S. Securities and Exchange Commission (SEC) once again emphasized the importance of investor protection principles following the collapse of stablecoins.

In Europe, the UK Treasury confirmed on May 10 that it will regulate stablecoins with the premise of supporting innovation, but will exclude algorithmic stablecoins from the regulatory scope. The Governor of the Bank of France revealed that the regulatory issues regarding encryption currencies will be discussed at the upcoming Group of Seven (G7) meeting.

The urgent actions of South Korean regulatory authorities have attracted widespread attention. They have requested local cryptocurrency exchanges to provide trading information related to problematic stablecoins, including trading volume, closing prices, and transaction quantities. The regulators also demanded that the exchanges provide countermeasures and conduct analyses.

The political circles in South Korea have also begun to question related companies. A party representative has called for a parliamentary hearing on the risks of stablecoins and suggested inviting the CEOs of relevant companies and executives from exchanges to attend.

In the United States, the Treasury Secretary has reiterated proposals to implement bank-like regulations on stablecoin issuers. The SEC Chairman stated that they will continue to act as the "police" of the encryption asset market to protect investor interests.

The UK has a more specific regulatory attitude towards stablecoins. The UK Treasury has announced plans to advance the regulation of stablecoins, but has made it clear that algorithmic stablecoins are not included, as they do not possess sufficient stability.

Overall, the recent stablecoin crash has triggered a global re-examination of the regulation of encryption assets. Regulatory agencies in various countries are accelerating the formulation of relevant policies to address the risks of the encryption market, protect investors' interests, and are also exploring how to achieve a balance between regulation and innovation.