Stablecoin News: After the latest BUSD action, there is a dramatic shift in dynamics in the stablecoin ecosystem. After the Monday action by the New York Department of Financial Services, Paxos was ordered to stop creating more BUSD, the shift occurred. Binance USD (BUSD) was launched by Paxos and Binance in 2019. It is the third-largest stablecoin. The latest SEC move was a setback for cryptocurrency markets, already feeling the heat after the SEC action on Kraken’s crypto-staking service.
Also, read: US CPI Data Sets the Tone for Crypto Market This Quarter Here’s why

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The stablecoin’s market capital fell by 1.30% within hours of the BUSD order. Traders are now focusing their efforts on safer options within the ecosystem because they fear that there will be more action against other stablecoins.

Circle, the US-based company behind stablecoin USDC, is being viewed as a risky proposition by regulators. This is an interesting trend. Tether, a USDT issuer, is considered safer than Circle, which is based in the US and is owned by iFinex. This is evident on-chain, as more traders prefer to park assets USDT over USDC. According to market insiders, this is affecting the US market’s ability to adopt innovation.

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Andrew, a crypto enthusiast, warns that Circle’s USDC could be next under scrutiny by the SEC after BUSD. In this context, he cited the example that PayPal abandoned its stablecoin project.
“Expect Circle, USDC to be next SEC stablecoin targets to receive a Wells Notice.
Sources: Circle and every stablecoin of consequence will be sued.”
Also read: This DeFi Platform has frozen its BUSD Reserves; which ones are next?

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