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What Is the Regulatory Outlook for Purely Algorithmic Stablecoins?

The regulatory outlook is increasingly skeptical, particularly after major failures. Regulators globally are focusing on requiring stablecoins to be fully backed by high-quality, liquid assets.

Purely algorithmic stablecoins, lacking such backing, are likely to face severe restrictions or outright bans, as they are deemed a systemic risk to financial stability and consumer protection.

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