In a consultation paper, the U.K. government recommended changing legislation to give the Bank of England the ability to have administrators oversee insolvency proceedings with stablecoin issuers. (CoinDesk)

Talking point: The collapse of TerraUSD has already sparked calls for more regulation on stablecoins in the U.S., where Treasury Secretary Janet Yellen has said she hopes to see tighter rules before the end of this year. TerraUSD, designed to maintain a value of US$1, lost its peg earlier this month and plunged in value shortly after, along with a related token called Luna. Investors lost billions of dollars as a result. Canadian officials haven’t yet announced plans to take any action in response to risks associated with stablecoins. Finance Canada didn’t immediately respond to The Logic’s request for comment. The Ontario Securities Commission deferred to the Canadian Securities Administrators, which said it is “working to monitor and assess the presence and role of stablecoins in Canadian capital markets, and to identify and respond to regulatory implications and risks.”