The FTX and Terra UST collapses highlighted the need for stronger stablecoin regulations to ensure transparency, reserve backing, and accountability. Stricter regulations could lead to more robust and trustworthy stablecoin projects, boosting investor confidence and broader adoption. However, these changes might also stifle innovation and create barriers for smaller projects. For the broader crypto ecosystem, regulatory clarity could pave the way for more institutional involvement but could also force some decentralized projects to adapt or face limitations in how they operate.