The SEC has a stablecoin firm in its sights — and it could shake up the whole $137 billion market
Publishing timestamp: 2023-02-19 20:46:49
Summary
The U.S. Securities and Exchange Commission could be gearing up to take action against Paxos, the company that issued Binance USD (BUSD) stablecoin. If the SEC starts official procedure, it could have huge implications for all stablecoins including Tether and USDC. Paxos disagrees with the SEC's staff, saying that BUSD is not a security under federal securities laws. The SEC is using the Howey test to determine whether BUSD is a security or not. If BUSD is deemed a security, then the SEC would have oversight over the stablecoin and the company would need to register with the SEC and accept more stringent regulation. The implications of the SEC's action could extend to other stablecoin issuers.
Sentiment: MIXED
Tickers: USDT.CM=, BUSD.CM=, USDC.CM=,
Keywords: united states, binance usd/usd, markets, usd coin/usd, tether/usd coin metrics, cryptocurrency, business news,