CZ, Binance CEO, reports on “BUSD Situation” after Regulatory Attack
Changpeng Zhao (CZ), Binance CEO, has always been vigilant against market confusion. CZ explained the BUSD situation as well as the decline in its market capitalization. Paxos was notified earlier by the U.S. Securities and Exchange Commission, (SEC), that BUSD was an “Unregistered Security”.
Slideshow: Binance USD Market Cap
According to data, Binance USD market cap (BUSD), has fallen by $2.45 Billion in the past few days. Since the U.S. SEC’s advisory, the BUSD market cap has fallen to $13.7 billion from $16.1 million.
The majority of the funds were moved to Tether (USDT), which is the largest stablecoin from the BUSD. Binance CEO said that USDT’s market cap has increased by $2.37 Billion, while USDC’s market cap fell by $739 M. This slide was called Landscape is shifting.
Stablecoins has $137.1 billion in cumulative market capital, out of $1 trillion total digital asset market. Stablecoins 24 hour trading volume has increased by 6% to $73.9 billion.
CZ on BUSD Related Funds
Binance CEO, CZ, stated in a recent AMA that the New York State Department of Financial Services, NYDFS, had instructed Paxos to provide a 1:1 pegging. It also asked them to make sure customers can redeem their funds.
He stated that the production of new BUSD has been halted and that the existing supply is safe. He accepted the increased regulatory tightening of financial watchdogs. Multiple banks have since stopped supporting crypto businesses.
Binance boss said that the US SEC would not admit that this was their “hunting season”. The attention and regulatory scrutiny of crypto industry has increased comparatively.
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