HomeUncategorizedUnstablecoins: Depegging, bank runs and other risks loom By Cointelegraph

Unstablecoins: Depegging, bank runs and other risks loom By Cointelegraph

March 1, 2023

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Unstablecoins: Depegging, bank runs and other risks loom

Stablecoins are entering a period of great uncertainty following the U.S. Securities and Exchange Commission labeling BUSD an unregistered security and ordering Paxos to stop minting new tokens.

Do these moves signal a wider war by U.S. regulators on stablecoins? Could the SEC declare all stablecoins securities, or is BUSD a special case?

Independent crypto reporter Amy Castor, who has been covering cryptocurrencies since 2016, believes the BUSD crackdown is aimed squarely at the worlds largest crypto exchange, Binance:

BUSD has looked more wobbly than is ideal lately, but it’s nothing too serious so far. (Coinmarketcap)
The market for stablecoins as of Feb. 10, 2023. Source: CoinGecko
Stablecoins are tokens most often pegged to the dollar. Source: Pexels
says it has reduced its risky commercial paper to zero. Source: Tether
90-day market cap charts for fiat-collateralized stablecoins USDT, USDC and BUSD as of Feb. 10, 2023. Source: CoinGecko
Report of Independent Certified Public Accountants. Source: Circle
Data from published attestations from Tether, Circle and Paxos.
The U.S. Treasury has concerns about the impact of stablecoins. Source: Pexels

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Unstablecoins: Depegging, bank runs and other risks loom

Stablecoins are entering a period of great uncertainty following the U.S. Securities and Exchange Commission labeling BUSD an unregistered security and ordering Paxos to stop minting new tokens.

Do these moves signal a wider war by U.S. regulators on stablecoins? Could the SEC declare all stablecoins securities, or is BUSD a special case?

Independent crypto reporter Amy Castor, who has been covering cryptocurrencies since 2016, believes the BUSD crackdown is aimed squarely at the worlds largest crypto exchange, Binance:

BUSD has looked more wobbly than is ideal lately, but it’s nothing too serious so far. (Coinmarketcap)
The market for stablecoins as of Feb. 10, 2023. Source: CoinGecko
Stablecoins are tokens most often pegged to the dollar. Source: Pexels
says it has reduced its risky commercial paper to zero. Source: Tether
90-day market cap charts for fiat-collateralized stablecoins USDT, USDC and BUSD as of Feb. 10, 2023. Source: CoinGecko
Report of Independent Certified Public Accountants. Source: Circle
Data from published attestations from Tether, Circle and Paxos.
The U.S. Treasury has concerns about the impact of stablecoins. Source: Pexels

Continue Reading on Coin Telegraph

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