Binance, the world’s largest cryptocurrency exchange, is targeted by US regulators. The United States Securities and Exchange Commission (SEC) order to Paxos on Binance USD (BUSD) was another setback for the cryptocurrency market. This is ‘What altcoins are next after BUSD?’ brought the question to mind. Market participants wonder if the SEC will sue other stablecoins.
SEC may also take action for similar altcoins after BUSD
cryptocoin.comAs you follow, the collapses and bankruptcies in the crypto market in 2022 have caused an increase in calls for regulation in this space. In particular, the collapse of the Terra ecosystem brought stablecoins to the fore. The ensuing collapse of crypto exchange FTX deepened the crisis and accelerated regulatory efforts. The market started 2023 in such an environment, and regulation attempts are coming in a row.
The stablecoin ecosystem is undergoing a major shift in dynamics following the US SEC’s recent action against the largest crypto exchange’s stablecoin, BUSD. The change was triggered after the New York Department of Financial Services ordered Paxos on Monday to stop creating more BUSD. In 2019, Paxos and Binance launched the third largest stablecoin, Binance USD (BUSD).
The SEC’s latest move has sparked another downturn for the crypto market, which is already feeling the heat of the recent SEC action on Kraken’s crypto staking service. Following the order against BUSD, the stablecoin’s market cap saw a sharp drop of 1.30% in a matter of hours. Meanwhile, the fear of taking more action on other stablecoins is causing traders to make safer choices within the ecosystem.
Will the next Circle have USDC?
Interestingly, there are concerns that Circle, the US-based company behind USDC, a stablecoin like BUSD, may be on the SEC’s target. On the other hand, Tether, the USDT issuer of Hong Kong-based iFinex, is considered a safer option. Therefore, more and more traders have chosen to park their assets in USDT rather than USDC. The clear trend for this situation is clearly on-chain. However, market participants believe this development has damaged the reputation of the US market in terms of adopting innovation.
In this regard, Andrew, a crypto enthusiast on Twitter, warns of the possibility of Circle’s USDC becoming the target of the SEC after BUSD lands on the SEC’s radar. In addition, he cites PayPal’s abandonment of the stablecoin project as an example. Andrew expresses his views on the subject as follows:
Expect the next SEC stablecoin target to receive the Wells Notice to be Circle and USDC. According to sources, Circle will be sued just like any other altcoin like BUSD.
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