Regulatory Action Against Binance USD and Paxos

02/17/2023 10:43 • NFT Newsflash • 138 views

It is reported that Bernstein said in a research report on Thursday that the regulatory action against the Binance USD (BUSD) stable currency and its issuer Paxos is aimed at BUSD and cannot involve other cryptocurrencies, such as USDC. According to the report, some people in the industry expressed concern that cryptocurrency “is actively withdrawing from the banking system and launching attacks on stable currency and regulatory rules”.

Bernstein: The tightening of the regulation of cryptocurrency by the US SEC is not a threat

Interpret the above information:

In a research report released on Thursday, Bernstein stated that the regulatory action against the Binance USD (BUSD) stable currency and its issuer Paxos is only aimed at BUSD and cannot involve other cryptocurrencies like USDC. While this may come as a relief for some in the industry, others have expressed concern over the current situation.

The sudden crackdown on BUSD and Paxos has led to speculation about the regulatory future of stable currencies in the cryptocurrency realm. Stable currencies are cryptocurrencies whose value is pegged to an underlying asset like fiat currency, which helps to provide stability and predictability. BUSD is one such stable currency whose value is pegged to the US dollar.

It is interesting to note that the report argues that the regulatory action against BUSD and Paxos is not directed at the industry as a whole, but only concerns these two companies. This suggests that there might be specific legal or compliance issues with BUSD or Paxos that prompted the regulatory agencies to act.

However, some in the industry are worried about the larger implications of this action. Cryptocurrencies have often been seen as a challenge to the traditional banking system, with their decentralised nature and lack of regulation. Stable currencies like BUSD and USDC sought to mitigate this issue by pegging their value to fiat currency, making them more reliable and predictable.

But now that even these stable currencies are under regulatory scrutiny, it raises questions about the future of cryptocurrencies and their relationship with the banking system. Are regulatory agencies worried that cryptocurrencies might completely withdraw from the banking system, and thereby push the system towards more instability?

In conclusion, the Bernstein report sheds light on the current regulatory action against BUSD and Paxos, which is aimed only at these two companies and not at the industry as a whole. However, the broader implications of this action on stable currencies and their relationship with the banking system remain to be seen.

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Regulatory Action Against Binance USD and Paxos

Bernstein: The tightening of the regulation of cryptocurrency by the US SEC is not a threat

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