LUNA was a very large stablecoin and had a very good reputation, yet the project failed.
Disagree on reputation part. It was popular only due unreasonably high APY, which was a big red flag for everyone that knows thing or two. I mean, more than 70% of all UST was staked and that tells you everything that you have to know about UST purpose. It was essentially a ponzi and we know how ponzi schemes usually end up.
Tether has already been audited several times to verify that all USDT are backed in USD and has passed all audits so far. In my opinion, for security reasons, SEC should check them again. Then we'll all sleep better.
Care to share some of those audits, that are done by a legit 3rd party and not by themselves?