Paxos ordered to Halt U.S. Dollar-Pegged Binance Stablecoin BUSDT- Has the SEC War on Crypto Begun? – Blockchain News, Opinion, TV and Jobs

Marcus Sotiriou, Market Analyst at Listed Digital Asset Broker global block (TSXV: Block).

Bitcoin is currently testing the critical support level of $21,500, but US regulators are eyeing cryptocurrency firms. SEC sues Paxos, issuer of BUSD, and BUSD as “unregistered securities”. Paxos has been ordered by the New York Financial Services Authority (which regulates Paxos) to stop issuing BUSD. Binance CEO CZ has announced that it will continue to support Binance USD, but “expects that users will migrate to other stablecoins over time” and will “adjust the product accordingly.” For example, do not use BUSD as your main pair for trading.”

BUSD currently has a market capitalization of around $16 billion, but CZ claims that “its market capitalization will only decrease over time as a result of the NYDFS enforcement actions.” The SEC’s actions seem off the mark. They call BUSD a security, but a hard-pegged stablecoin has no return potential and is priced like a gift card with value.

The SEC also took action against Kraken last week. They announced a settlement with Kraken where he agreed to stop offering staking as a service and pay a $30 million fine. However, since there are no actual victims, no money is returned. Regulation by enforcement is baffling to cryptocurrency enthusiasts. The SEC claims that “all cryptocurrency projects must do is to participate and register,” but even if they do, they will simply say “no.” People are desperately trying to find ways to offer their products legally without any guidance.

A new study of crypto-related litigation since 2018 shows a 42% increase in crypto litigation in the US in 2022, but the SEC’s war on cryptocurrencies appears to be just beginning. The US risks being left behind in offshore cryptocurrency activity.

Could this be an opportunity for other governments like the UK to take advantage of?

Leave a Reply

Your email address will not be published. Required fields are marked *