BUSD

USDC

<p>While Binance finds itself in the SEC’s crosshairs, another crypto, USDC, finds itself caught up in this storm. But what’s really going on, and why is Circle concerned?</p> 
<h2 id="h-usdc-and-the-crypto-classification-debate">USDC and the crypto-classification debate</h2> 
<p>The SEC has always been vigilant when it comes to crypto regulation, and <a href="https://www.cointribune.com/en/crypto-binance-obtient-une-prolongation-pour-repondre-aux-ordonnances-du-tribunal-2/" target="_blank" rel="noopener noreferrer nofollow">Binance is currently in its sights</a>. This move has caused a stir in the industry, prompting Circle to intervene. The reason? USDC, a stablecoin backed by Circle, is directly threatened by these regulations.</p> 
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<p>Crypto company Circle has thus raised a <a href="https://www.courtlistener.com/docket/67474542/securities-and-exchange-commission-v-binance-holdings-limited/" target="_blank" rel="noopener noreferrer nofollow">key argument</a>: stablecoins, like USDC, should not be considered securities.</p> 
<p>In their view, these tokens lack the distinct characteristics of investment contracts. To support their view, they cite decades of case law, suggesting that a simple sale of assets with no post-sale obligations does not create an investment contract.</p> 
<h2 id="h-stablecoins-a-regulatory-issue">Stablecoins: a regulatory issue</h2> 
<p>In February, Jeremy Allaire, CEO of Circle, expressed a clear opinion on how assets, such as crypto USDC, should be regulated.</p> 
<p>Rather than falling under the purview of the SEC, he believes they should be under the jurisdiction of banking regulators. This position was in response to a previous SEC action against Paxos, linked to the BUSD stablecoin.</p> 
<p>The stablecoin debate doesn’t stop there. In June, the SEC took the bold step of suing Binance and its CEO, Changpeng Zhao. The commission classified a staggering $115 billion of crypto assets, including the BUSD, as securities, arguing that their nature promised future profits, making them investment contracts.</p> 
<p>The battle between Binance and the SEC is shaping up to be a turning point for the crypto sector. Circle, with its stablecoin USDC, is caught in the middle, struggling to establish a clear position in this regulatory melee. As the turmoil continues, one question remains: how will this case influence the future of crypto as a whole? In the meantime, <a href="https://www.cointribune.com/en/crypto-l-arabie-saoudite-delaisse-le-dollar-2/" target="_blank" rel="noopener noreferrer nofollow">Saudi Arabia is ditching the dollar in favor of crypto</a>.</p>

USDC Crypto on Thin Ice Amidst Binance Turmoil

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