SEC gives up on sueing BUSD

[TryNinja]

After basically killing BUSD, the stablecoin issued by Paxos as a whitelabel for Binance, by making it wind down their marketcap to basically zero, the SEC has now given up on its persue against the stablecoin.

They shot a guy on the street and after he was declared dead they said "ooppsie, never mind".

“Paxos prevails in SEC investigation of BUSD stablecoin” 👏

On Tuesday, we received a formal termination notice from the SEC stating that it will not recommend enforcement action against Paxos Trust Company in the investigation of Binance USD (BUSD).

View the letter and our official press release to learn more: https://No link shortners - please include original link/4bBH1DH

https://x.com/Paxos/status/1811405877733097703

At one point BUSD had a supply of $23 billion. That was how much Paxos could use to make money, as every BUSD represents 1 USD that could be earning yield on the treasury. Hundreds of millions of potential revenue lost.

[pakhitheboss]

When Binance halted BUSD support last year it was assumed the total end of it. Why would the SEC need to go after it now as due to their regulatory pressure it already died? Anyway, I was not a big fan of BUSD and never used it on the Binance exchange. It got that market cap because of Binance as out of Binance it did not have any existence.

[Husires]

They have achieved their goal: either comply or stop the service.
BUSD has officially ended, and I do not think that any successful investor will think about supporting it, and Binance will not think about competing with USDT with any stable currency in the near future, so we will not see anything similar to what happened with LUNA soon.

[TryNinja]

They have achieved their goal: either comply or stop the service.
BUSD has officially ended, and I do not think that any successful investor will think about supporting it, and Binance will not think about competing with USDT with any stable currency in the near future, so we will not see anything similar to what happened with LUNA soon.

Not sure how one thing connects to the other. LUNA is not even 1% similar to USDT, USDC, BUSD, or any of the other major stablecoins. Their "stable" UST was entirely backed by LUNA, which only had value because of UST and their ponzi (Anchor). It was a snake eats its own tail kind of crash. All truly backed stables have 1:1 reserves in USD fiat or treasury bills.

[MrSpasybo]

They have achieved their goal: either comply or stop the service.
BUSD has officially ended, and I do not think that any successful investor will think about supporting it, and Binance will not think about competing with USDT with any stable currency in the near future, so we will not see anything similar to what happened with LUNA soon.

We can consider the SEC's move a success for the crypto market, but it is unfortunate that BUSD will no longer have any chance to return to this market as Paxos and Binance are no longer supporting its development. I think someone, for example Gary Gensler, should be held responsible for this!

This case shows us more clearly the weakness of crypto in the face of attacks from regulators. The SEC may not win, but their lawsuits are enough to cause projects to struggle, even fail and disappear from the market.

[Husires]

All truly backed stables have 1:1 reserves in USD fiat or treasury bills.

Regulators did not pay attention to stablecoins until investors lost their money after what happened with Luna and FTX, so any stablecoin that has issues, they will try to audit it.

This case shows us more clearly the weakness of crypto in the face of attacks from regulators. The SEC may not win, but their lawsuits are enough to cause projects to struggle, even fail and disappear from the market.

Yes, stablecoins do not have the ability to do anything, as most of the assets will be in the form of treasury bills or any quickly liquidated securities, and all of these tools are in USA market and under the supervision of the SEC.

[dkbit98]

Sure they did drop all the charges against BUSD now, after binance owner CZ accepted to spend few months in jail and pay the hefty fee to US government.
That doesn't mean that after this news people should start using all the crap that is created on fully centralized binance chain.

[Cech1337]

After basically killing BUSD, the stablecoin issued by Paxos as a whitelabel for Binance, by making it wind down their marketcap to basically zero, the SEC has now given up on its persue against the stablecoin.

They shot a guy on the street and after he was declared dead they said "ooppsie, never mind".

“Paxos prevails in SEC investigation of BUSD stablecoin” 👏

On Tuesday, we received a formal termination notice from the SEC stating that it will not recommend enforcement action against Paxos Trust Company in the investigation of Binance USD (BUSD).

View the letter and our official press release to learn more: https://No link shortners - please include original link/4bBH1DH

https://x.com/Paxos/status/1811405877733097703

At one point BUSD had a supply of $23 billion. That was how much Paxos could use to make money, as every BUSD represents 1 USD that could be earning yield on the treasury. Hundreds of millions of potential revenue lost.

It’s quite a turn of events with the SEC's decision regarding BUSD. Here’s a quick recap of the situation:

What Happened:

BUSD's Market Impact: BUSD, a stablecoin issued by Paxos for Binance, saw its market cap dwindling significantly after the SEC's scrutiny. At its peak, BUSD had a market cap of $23 billion, representing a substantial amount of potential revenue for Paxos.

SEC’s Decision: The SEC has now decided to drop its investigation and will not recommend enforcement action against Paxos. This comes after a period of significant pressure on the stablecoin.

Your Point:

Revenue Impact: The winding down of BUSD has resulted in a loss of hundreds of millions in potential revenue for Paxos. This is a considerable impact, given the scale at which BUSD was operating.

Regulatory Dynamics: It’s intriguing how the regulatory landscape can shift rapidly, sometimes leaving significant consequences in its wake. The situation with BUSD highlights the volatility and unpredictability of regulatory actions in the crypto space.

Additional Thoughts:

Market Reaction: The termination of the investigation might not revive BUSD’s previous market cap, but it could influence the broader regulatory environment for stablecoins and crypto assets.

Future of Stablecoins: This incident could set a precedent for how similar cases are handled in the future. It might also impact how other stablecoin issuers approach regulatory compliance.

What are your thoughts? Do you think this outcome will affect Paxos’s strategy moving forward, or could it influence how other stablecoin projects manage their regulatory interactions?

[erus]

It seems like this SEC always makes a fuss among cryptocurrency lovers so that wherever the SEC is there must be a commotion, I don't like commotion.
The SEC should support what is all developed by Dev especially stable coins, instead this SEC continues to make a fuss about the Paxos stable coin.
Does anyone know when this SEC can be quiet or take a break from interfering in the crypto space?

[Vision pro]

I am saying something from the news I got on social media and what I understood from reading your post. Although the SEC (Securities and Exchange Commission) was preparing to file a legal case against BUSD (Binance USD), they later decided not to file that case.  The SEC complained that BUSD might be an unregistered security, but ultimately chose not to prosecute, which likely brought temporary relief to the crypto market.  And that's why the experts speculated that the market relief has returned.

[TomPluz]

Does anyone know when this SEC can be quiet or take a break from interfering in the crypto space?

To the question of WHEN will SEC stop its crypto interference, the best answer is when the people in SEC will be replaced. And when I say people that includes its chairman Gary Gensler who unfortunately has a 5-year tenure until 2026. There is a possibility of have him go if Harris/Walz will not win the White House in November 2024, otherwise the crypto industry should be bracing itself for two more years of antagonism from this agency.

[MUGNIA]

When Binance halted BUSD support last year it was assumed the total end of it. Why would the SEC need to go after it now as due to their regulatory pressure it already died? Anyway, I was not a big fan of BUSD and never used it on the Binance exchange. It got that market cap because of Binance as out of Binance it did not have any existence.

what is their reason (SEC) to remove BUSD on binance other than regulation, so that binance can remove BUSD as soon as possible. currently I am a bit awkward using the new FUSDT, because it is not familiar to me

[PX-Z]

Does anyone know when this SEC can be quiet or take a break from interfering in the crypto space?

To the question of WHEN will SEC stop its crypto interference, the best answer is when the people in SEC will be replaced. And when I say people that includes its chairman Gary Gensler who unfortunately has a 5-year tenure until 2026.

The decision is much more on the upper level than just the SEC chair IMO. Or even the current admin does matter on these decisions. Once the admin is changed idk if the current chairman will stay on its attitude towards crypto.

[MrSpasybo]

what is their reason (SEC) to remove BUSD on binance other than regulation, so that binance can remove BUSD as soon as possible. currently I am a bit awkward using the new FUSDT, because it is not familiar to me

I think the attack on BUSD is just part of a plan to attack Binance in the US, and as a result, Binance faced a lot of FUD in 2023. Eventually, BUSD will soon disappear and Binance will have to pay a $4B fine to the DOJ. It seems like this is what the crypto forces in the US are doing to stifle Binance growth.

FDUSD is also quite safe and has received Binance trust in many launchpads and launchpools on the Binance CEX. Using FDUSD is similar to using BUSD, but honestly, I still prefer USDT, and if I want to participate in IEOs on Binance CEX, I would choose to hold BNB instead of FDUSD.

• What Is First Digital USD (FDUSD)?

[B.Trader]

Does anyone know when this SEC can be quiet or take a break from interfering in the crypto space?

To the question of WHEN will SEC stop its crypto interference, the best answer is when the people in SEC will be replaced. And when I say people that includes its chairman Gary Gensler who unfortunately has a 5-year tenure until 2026. There is a possibility of have him go if Harris/Walz will not win the White House in November 2024, otherwise the crypto industry should be bracing itself for two more years of antagonism from this agency.

Your perspective on the SEC's stance towards crypto under Gary Gensler reflects the concerns many in the industry share. The regulatory environment, especially under his leadership, has been notably stringent. The possibility of change, as you mentioned, could indeed depend on the outcome of the 2024 presidential election. A shift in leadership could lead to a different approach toward cryptocurrency regulation, potentially more favorable to the industry. However, if the current administration remains in power, the crypto industry may need to prepare for continued regulatory challenges until at least 2026.