Unstablecoins: Depegging, bank runs and other risks loom

Cointelegraph

Published Mar 01, 2023 09:30AM ET

Updated Mar 01, 2023 09:40AM ET

Stablecoins are entering a period of great uncertainty following the U.S. Securities and Exchange Commission labeling BUSD an unregistered security and ordering Paxos to stop minting new tokens.

Do these moves signal a wider war by U.S. regulators on stablecoins? Could the SEC declare all stablecoins securities, or is BUSD a special case?

Independent crypto reporter Amy Castor, who has been covering cryptocurrencies since 2016, believes the BUSD crackdown is aimed squarely at the worlds largest crypto exchange, Binance:

BUSD has looked more wobbly than is ideal lately, but it’s nothing too serious so far. (Coinmarketcap)
The market for stablecoins as of Feb. 10, 2023. Source: CoinGecko
Stablecoins are tokens most often pegged to the dollar. Source: Pexels
Tether says it has reduced its risky commercial paper to zero. Source: Tether
Read also
Features
Features
90-day market cap charts for fiat-collateralized stablecoins USDT, USDC and BUSD as of Feb. 10, 2023. Source: CoinGecko
Report of Independent Certified Public Accountants. Source: Circle
Data from published attestations from Tether, Circle and Paxos.
The U.S. Treasury has concerns about the impact of stablecoins. Source: Pexels
Read also
Features
Features

Get The News You Want
Read market moving news with a personalized feed of stocks you care about.
Get The App

Continue Reading on Coin Telegraph