According to CNBC, so far, government officials don’t seem to be worried about a crypto crash taking down the broader economy. Several senators and regulators said on the sidelines of the DC Blockchain Summit this week that the spillover effects are contained, crypto investors shouldn’t freak out, U.S. regulation is the key to success for cryptocurrencies. “There need to be rules to this game that make it more predictable, transparent, where there are the needed consumer protections,” said Sen. Cory Booker, D-NJ. CoinMetrics’ Nic Carter said that no algorithmic stablecoin has ever succeeded, noting that the fundamental problem with UST was that it was largely backed by faith in the issuer. Sen. Cynthia Lummis, R-Wyo. agrees with Carter. “There are a couple types of stablecoins. The one that failed is an algorithmic stablecoin, very different from an asset-backed stablecoin,” Lummis told CNBC. She said she hoped consumers could see that not all stablecoins are made equal and that choosing an asset-backed stablecoin is essential. For Commissioner Caroline Pham of the Commodity Futures Trading Commission, the UST meltdown highlights just how much action regulators need to take to protect against a possible return of shadow banking — that is, a type of banking system in which financial activities are facilitated by unregulated intermediaries or under unregulated circumstances. The key question that regulators and lawmakers need to address is whether stablecoins, including the subset of algorithmic stablecoins, are in fact derivatives, says Pham. The SEC regulates securities, but for everything that is not a security, the CFTC probably has some regulatory touchpoint over it, says Pham.