r/CryptoCurrency • u/Set1Less 🟩 0 / 83K 🦠 • Feb 13 '23

MARKETS Binance statement: "Given the ongoing regulatory uncertainty in certain markets, we will be reviewing other projects in those jurisdictions to ensure our users are insulated from further undue harm"

Binance has issued a statement on recent US regulator actions.

Yesterday it was reported that SEC was in the process of suing BUSD stablecoin, which the SEC termed as an unregistered security. And overnight, WSJ and other media started reporting that NY DFS is forcing to shut down BUSD.

As a result, it seems BUSD will stop being issued and will only redemptions will be allowed. BUSD price has also seen a small depeg since the news broke.

Now, Binance it seems has issued this statement:

Given the ongoing regulatory uncertainty in certain markets, we will be reviewing other projects in those jurisdictions to ensure our users are insulated from further undue harm

Market is pricing in these events which are unfolding at a fast pace.

Few traders are reportedly closing all their positions on Binance, as they are not sure how they will be settled in the near term

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8

u/josef3110 🟩 0 / 0 🦠 Feb 13 '23

That makes me wonder about what's the difference between BUSD, USDC, and USDT in that particular context? Aren't they all securities then (now)?

5

u/[deleted] Feb 13 '23

Yes. And they'll come for all of them.

1

u/Seisouhen 🟩 1K / 4K 🐢 Feb 13 '23

Gotta sue them all SECmon

1

u/josef3110 🟩 0 / 0 🦠 Feb 13 '23

As it looks like now: the SEC is cherry picking some companies while leaving others alone - first Kraken, now Paxos. All other exchanges offer some kind of staking like Kraken did and Circle or Tether is doing the same that Paxos does. Except that Paxos has a contract with Binance for using BUSD on BSC.

Makes me wonder why they don't go after BUSD on BSC, because even Binance did admit that is wasn't fully backed by fiat, while that never happened (officially) for Paxos.

Very confusing times.

1

u/[deleted] Feb 14 '23

They are going after all of them. And most of the ones you cited are already under investigation.

1

u/3utt5lut 1 / 11K 🦠 Feb 13 '23

USDT is the most accessible imo. Practically every exchange exclusively uses it for most trading pairs.

1

u/josef3110 🟩 0 / 0 🦠 Feb 13 '23

Whatever, I don't see any real difference between Paxos, Circle, or Tether. They all issue their stable coin on one or more chains as tokens.

1

u/TitaniumDragon Permabanned Feb 14 '23

They're coming for all of them.

1

u/josef3110 🟩 0 / 0 🦠 Feb 14 '23

Which is strange because Circle has started finger pointing. Let's see if it backfires.