Ethereum co-founder Vitalik Buterin has advocated for ETH-backed algorithmic stablecoins, describing them as "true DeFi" due to their decentralized, self-sustaining design. These stablecoins, which automatically adjust supply through smart contracts, transfer counterparty risk to market makers, enhancing resilience and reducing reliance on centralized custodians like those in USDC-based models. Buterin's endorsement comes as the White House prepares to discuss stablecoin regulations on February 10, 2026. The meeting will address the impact of stablecoins on banks, crypto firms, and interest-bearing tokens. Buterin's proposal highlights the potential of algorithmic stablecoins to align with DeFi principles by distributing risk and maintaining decentralized oversight, contrasting with the centralization concerns of USDC-backed tokens.