BNB tumbles more than 9% after Paxos news

Binance Coin is down more than 9% today as investors consider the possibility of increased regulatory scrutiny in light of the SEC’s warning that the Binance stablecoin may be considered a security. bottom.

The news comes after it was revealed late last week that US-based blockchain entity Paxos would suspend the issuance of Binance USD (BUSD) after scrutiny by US regulators. it was done.

BNB is now trading below $300 in the $289.5 range for the first time since January 17th.

Paxos Trust Company is a New York-based fintech company founded in 2012 that specializes in blockchain technology. The company has confirmed that it had received a Wells Notice lawsuit from the SEC over the issuance of Binances USD-pegged stablecoin, BUSD.

Reports have also emerged that BUSD’s $15 billion stablecoin market cap may now be available, with Bloomberg reporting today that the Circle has become a watchdog in New York. It reports that it was told that it was not backed up.

The combined market cap of USDC and USDT is $109 billion, more than seven times the $15 billion market cap of BUSD.

on twitter thread Going public on February 13, CZ admitted that he may have been betrayed. Users will eventually migrate to other stablecoins, CZ admitted. And then adjust the product accordingly. For example, don’t use BUSD as your main pair to trade.

Nonetheless, CZ said it hoped U.S. regulators would not issue notices declaring BUSD a security, saying, “Given the continued regulatory uncertainty in certain markets, We will be reviewing other projects in these jurisdictions to ensure our users are protected from unfair practices.” harm. “