The Securities and Exchange Commission (SEC) has always been on Crypto crackdown on crypto companies and 2023 crypto crackdown started with Kraken. The SEC charged Kraken for not registering their sale of the crypto staking programme after which the exchange agreed to shut down the programme.
The recent one comes with the crackdown of Paxos which is a financial and Blockchain institution. Today the SEC prosecuted Paxos for issuing and listing Bianance USD (BUSD) stablecoin. This move has benefitted Tether in terms of market capitalization that has peaked.
Tether Records Highest Market Cap
As per SEC’s claim the US dollar-backed stablecoin, BUSD is a security and Paxos has made a move against investor protection law after listing it on their platform. Paxos listed BUSD on Feb 13 and since then BUSD has lost its market cap by nearly $2 billion after hitting $14 billion as of today.
On the other hand, the second largest stablecoin by its market cap, USD Coin has recorded a drop in its supply. Its market cap has decreased from Feb 12’s $41.29 billion to $40.99 billion on Feb 14. Nevertheless, USD did reclaimed its $41.30 billion range on Feb 15 following the news that Circle was not involved in any lawsuit action.
Interestingly, the SEC’s crypto crackdown has laid a positive impact on Tether as its market cap has increased nearly $69 billion.
This was mainly due to investors’ decision to dump BUSD after the Paxos crack down news and moving towards Tether USDT. However, this is a developing story, hence I need to watchout for further development to know the results.
Source: https://coinpedia.org/news/tether-tops-in-terms-of-stablecoin-market-cap-here-is-why/