Future

BUSD

<p>The news hit the crypto sphere like a thunderbolt: the SEC has officially ended its investigation into the BUSD stablecoin without taking any enforcement action. Paxos, the stablecoin issuer, announced this news with a sigh of relief.</p> 
<h2 id="h-the-end-of-a-closely-watched-crypto-investigation">The End of a Closely Watched Crypto Investigation</h2> 
<p>The SEC recently closed its investigation into BUSD, a stablecoin issued by Paxos in partnership with Binance. Paxos made the announcement on Thursday, signaling the end of months of speculation and uncertainty.</p>
<div class="my-4">
 <div class="ads " data-page-type="" data-location="1"> 
 </div> 
</div> 
<div class="affiliate-button"> <a class="affiliate-button__link" href="https://bitvavo.com/fr/affiliate/coinmedia?a=_cta" target="_blank" rel="noreferrer noopener">€20 bonus for registering on Bitvavo</a> <a class="affiliate-button__disclaimer" href="https://www.cointribune.com/en/sponsored-content/" target="_blank" rel="noreferrer noopener">This link uses an affiliate program.</a> 
</div> 
<p>According to Paxos, the SEC found no reason to pursue enforcement actions against the company. The investigation mainly focused on the legal status of BUSD and whether it could be considered a security under federal securities laws.</p> 
<p>Despite initial tensions, the SEC decided not to impose sanctions, a decision that could encourage other stablecoin issuers to continue their operations with greater confidence.</p> 
<p><a href="https://x.com/Paxos/status/1811405877733097703" target="_blank" rel="noreferrer noopener">The announcement of the end of the investigation</a> elicited diverse reactions within the crypto community. Many view this decision as a validation of Paxos’ approach to regulatory compliance.</p> 
<p>Jeremy Allaire, CEO of Circle, congratulated Paxos on Twitter, highlighting the importance of regulatory clarity in the stablecoin sector.</p> 
<p>Juan Leon, Senior Investment Strategist at Bitwise, also welcomed this decision as a victory for stablecoins.</p> 
<p>He noted that this clarification could boost investor confidence in these financial instruments, which play a crucial role in facilitating transactions and stabilizing crypto markets.</p> 
<h2 id="h-the-regulatory-stakes-of-busd">The Regulatory Stakes of BUSD</h2> 
<p>BUSD, a stablecoin pegged to the US dollar, saw its market capitalization reach new heights before regulators stepped in.</p> 
<p>The SEC’s investigation raised critical questions about how stablecoins are perceived by regulators. The main point of contention was the nature of BUSD: was it a security under the Howey test, which determines what constitutes an investment contract?</p>
<div class="my-4">
 <div class="ads " data-page-type="" data-location="2"> 
 </div> 
</div> 
<p>U.S. District Judge Amy Berman Jackson recently ruled that the SEC had not sufficiently proven that BUSD was marketed as an investment contract. This decision removed some of the accusations, although other aspects of the lawsuit against Binance and its business practices are still ongoing.</p> 
<h2 id="h-the-future-of-stablecoins-after-the-sec-decision">The Future of Stablecoins After the SEC Decision</h2> 
<p>The SEC’s decision to close the investigation without sanctions paves the way for a new era for stablecoins. Paxos has expressed optimism about the future adoption of these assets by major global companies. By asserting that its stablecoins are not securities, Paxos hopes to encourage broader and more secure adoption of stablecoins in the global economy.</p> 
<p>This regulatory clarification could also influence other jurisdictions around the world. As regulators continue to debate the merits and risks of stablecoins, the SEC’s decision could serve as a model for balanced regulation that protects investors while fostering innovation.</p>

Crypto: SEC Closes BUSD Probe, Paxos Announces

Daftar Isi

Cointribune EN

Artikel lain yang dipublikasikan pada 12 Jul 2024

RWA Tokens Ready to Surge? Top Picks by Crypto Whales: Reasons Why CYBRO Set to Dominate Market

Ethereum and Bitcoin: 3 Reasons Why Ethereum Price Continues to Underperform Against BTC in 2024

Safuu 2.0: The New DeFi Protocol on BASE Blockchain offering 102,800% APY

Coinbase’s Subpoena of SEC Chair Gensler Faces Judicial Criticism

Here is the Next Big Thing for Cardano (ADA) Price: Will XRP Price Follow the Suit?

SEC eases crypto reporting rules for banks and brokerages

Bergabunglah dengan buletin gratis kami untuk pembaruan kripto harian!