BNB tumbles more than 9% after Paxos news BNB tumbles more than 9% after Paxos news
Binance Coin (BNB) has taken a hit as US regulators reportedly take a closer look at BUSD.
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Updated: Feb. 14, 2023 at 12:39 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Binance Coin has fallen more than 9% today as investors mull the prospect of increased regulatory scrutiny in light of an SEC warning that the Binance stablecoin may be considered a security.ย
The news comes after it emerged late last week that US-based blockchain entity, Paxos, would suspend its issuance of Binance USD (BUSD) after scrutiny from US regulators.ย
BNB is now trading below US$300 — in the range of $289.5 — for the first time since Jan. 17.ย
The Paxos Trust Company is a New York-based fin-tech company specializing in blockchain technology founded in 2012. It admitted to having been served a Wells Notice lawsuit by the SEC over its issuance of BUSD, the Binance stablecoin pegged to the US dollar.ย
Reports are also now emerging that BUSDโs $15 billion dollar stablecoin market cap may now be up grabs, with Bloomberg reporting earlier today that Circle had told the New York watchdog that Binanceโs stablecoin was not fully backed.ย
USDC and USDT have a combined market cap of $109 billion, more than 7x the $15 billion market cap of BUSD.ย
In a Twitter thread published on Feb. 13, CZ admitted that he might have been outfoxed. โWe do foresee users migrating to other stablecoins over time,โ CZ admitted. โAnd we will make product adjustments accordingly. e.g., move away from using BUSD as the main pair for trading, etc.โ
Nevertheless, CZ said that he hopes the US regulators will not issue a notice declaring BUSD a security, adding that โgiven the ongoing regulatory uncertainty in certain markets, we will be reviewing other projects in those jurisdictions to ensure our users are insulated from any undue harm.โ
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Posted In: Analysis, Stablecoins
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Dorian Batycka
Dorian Batycka is a journalist interested in art and technology. He has previously contributed to CoinDesk, Decrypt, Artforum, Artnet News, the Art Newspaper, and many others. He can be found on Twitter and Instagram @temp_projects, where he often memes his way through current financial and art news, scandals, and events.
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BNB, or Binance Coin, is a cryptocurrency created by Binance.
Binance USD
$1.00063
BUSD is a stablecoin issued by Paxos in partnership with Binance..
USD Coin
$1.00006
USD Coin (USDC) is a stablecoin fully backed by the US dollar and developed by the CENTRE consortium.
Tether
$0.99988
Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Circle
Circle Internet Financial Ltd is a global internet finance company, built on blockchain technology and powered by crypto assets.
Tether Limited
Tether Limited is the company that introduced Tether (USDโฎ or USDT), an asset-backed cryptocurrency stablecoin, in 2014.