USDc Burns $5 Billion – Trustnodes

The USDc market cap is down from $44 billion last month to $38 billion with $4.7 billion of it burned just on Friday according to blockchain data.

“4.7B USDC have been burned by Circle and Coinbase within the last 24 hours,” PeckShield, the auditing and blockchain analytics firm, said.

“Now, I have more guesses for the reason(s) for this,” Changpeng Zhao, Binance’s founder, said referring to the burn after he received a notice that Paxos was to stop minting bUSD.

That suggests he thinks Circle may have also been asked to stop minting, but there has been no statement by Circle or Coinbase to such effect.

USDc’s market cap in addition has kept falling since summer, but both the bUSD issuer Paxos and Circle are regulated by the New York Department of Financial Services (NYDFS).

For NYDFS to order Paxos to stop minting and not Circle would therefore be a bit strange.

If they do order, then only Tether’s USDt would be left standing. They’re based in Europe as far as we are aware, with this stablecoin, the first and the oldest, able to survive intense scrutiny for the past eight years since it launched in 2015.

NYDFS does not have jurisdiction over them, and neither does SEC in a de facto manner, with the United States witnessing for the first time a far reaching decision by a regulator without public consultation or debate.

Because the NYDFS order amounts to basically killing a new innovation without law makers having any say whatever.

That is now making the United States a no go zone, just one step below China, leaving huge opportunities for Europe and the euro or the United Kingdom and GBP.

The euro has struggled significantly to emulate the success of the tokenized dollar, but if US is taking itself out of the competition, then some euro c b or t may well become the only choice for global crypto trade following this stealth ‘regulation.’