2023-02-14
BUSD is the third largest stablecoin by market cap, the stablecoin is developed and managed by Paxos and supported by Binance. Paxos is regulated by the New York Department of Financial Services to ensure that BUSD is a 1:1 backed stablecoin. On February 12, 2023, the United States Securities and Exchange Commission (SEC) has informed Paxos Trust Co. the issuer of BUSD through the notice letter that SEC plans to sue Paxos, alleging violation of investor protection laws because BUSD stablecoins are unregistered securities.
Later, on February 13, 2023 the New York Department of Financial Services orders Paxos to stop issuing new BUSD. Not only stablecoins that have been affected from SEC, last week SEC announced that crypto staking services violate securities laws. Kraken have to stop staking service in the United States. SEC claims that staking services are not securities. The news about SEC crackdown on staking services and stablecoins has caused the price of cryptocurrencies to drop slightly. Bitcoin price in the past 7 days down 4.69%, while BNB price in the past 7 days down 10.32%.
