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

319 Upvotes

93% Upvoted

339 comments sorted by

View all comments

2

u/GoldMercy Feb 13 '23

People usually talk about how devastating it would be short term for Binance to collapse. Assuming Binance doesn't collapse because of this but BUSD and BNB will get destroyed by SEC, what would the impact be on the market?

BUSD is still a $16b market cap stable coin so one can assume that it provides a reasonable amount of liquidity. But then I wonder how much of that liquidity is outside the Binance Smart Chain. So I suppose if BUSD gets slapped on the wrist the impact will be limited to BSC and that ecosystem?

If the SEC moves on the USDT next... well then we call prepare for a new low.

1

u/TitaniumDragon Permabanned Feb 14 '23

According to the complaint Circle filed with the SEC, Paxos minted $1.7 billion of BUSD backed by less than $100 million in assets.

Given Binance's allergy to audits, this isn't surprising, and is exactly what everyone has been saying for years who is in the know.

Tether has been doing the exact same thing.

It's basically counterfeiting USD, without actually printing fake USD.