Binance Stablecoin (BUSD) To Shut Down | Pending SEC Lawsuit

Okay welcome back everybody my name's Austin breaking news if you use Binance's stablecoin the SEC to supaxos For issuing binance USD coin now Ave may Be about to de-list CZ of binance issued A statement on this this morning before We get to this let's just clue everybody In on exactly where we stand according To a recent report by The Wall Street Journal the SEC sent out a letter to Paxos the people behind busd In the letter the regulator notified Paxos of a possible enforcement action So a possible legal action against what What did binance's stablecoin do wrong The SEC is alleging that busd is an Unregistered security therefore the Regulator is suing the firm for Violating investor protection laws now How a stable coin can be an unregistered Security because it's stable there Should be no expectation of profit is Wild but I guess they're alleging that Paxos not only listed the stablecoin but Jointly launched it with binance back in 2019. currently binance only licenses The brand but busd is issued and owned By paxos which is a New York American Company nevertheless binance claims to Be monitoring the situation and what Exactly would this lawsuit be from the SEC Because right now it is not certain if The SEC is planning on suing the firm

For issuing the stable coin or just Listing it if it's the latter listing it A plethora of cryptocurrency exchanges Could be in trouble as they continue to List busd now the most outrageous thing To me is I understand if the SEC gets on Altcoins that fluctuate in value for Being unregistered Securities because I Could easily see an argument hey there Is an expectation of profit from the Work of others but any stablecoin Especially ones created and managed in The US which busd is paxos is in the US This should be backed one to one for Every busd there should be one dollar in The bank so I don't see how they could Get on them for an unregistered security If they're planning on suing the firm Just for issuing the stable coin maybe The US is sort of clearing the way to Issue their own National digital dollar Cbdc and they don't want these other Ones floating around causing confusion They want there to be one digital dollar Back nationally in this case they'd Probably just use usdc they probably Just acquire it from Circle as my Speculation Subscribers of this channel will Remember this we reported on it just Last week the New York Department of Financial Services nydfs launched an Investigation against paxos the details Of that investigation exactly what

They're getting on paxis for was unclear But it should be noted that paxos is a Trust Company chartered by the nydfs They were based in New York I believe Which is the most regulated state in the United States and they always attempted To do things right now directly after This breaking news paxos has halted all New busd minting they're also ending Their relationship with Finance meaning That it doesn't look like this stable Coin is going to die anytime soon unless We get more info but this isn't a death Sentence but this does just mean if They're not minting anymore other Entities or companies will have to use Other stable coins and busd will just Sort of Fade Into the Shadows now of Course if paxos is just hit it with a Fine slap on the wrist and they do start Minting again then be used will be fine Now on this news the Ave community mulls Over freezing binance stablecoin amid SEC pressure Ave being one of the Largest D5 protocols in the world their Mindset is as the circulating Supply Trends to zero for busd if it never Reopens again the lack of growth could Hurt Peg Arbitrage opportunity and asset Peg meaning that Ave is defy meaning Decentralized lending and borrowing People would deposit any stable coin and That would be lent out in a Decentralized way and then users could

Earn yield on that stable coin now Ave Is just considering taking the protocol Off the platform of course this would Have to be in a decentralized vote the Community would have to decide CZ has then since issued a statement and By the way if you appreciate these daily Updates make sure you click subscribe CZ Tweeted this busd a thread in summary Busd is issued and Redeemed by paxos and Funds are sefu an inside joke meaning Funds are safe we were informed by paxos That they have been directed to Ceasementing new busd by the New York Department of Financial Services and Ydfs Paxos is regulated by nydfs busd is a Stable coin wholly owned and managed by Paxos so essentially cesia is saying This is paxos's issue they're they're a U.S company we just license this but What this means if they're not minting Any new stable coin as a result busd Market cap will only decrease over time Of course for any current users of busd According to CZ no reason to panic paxos Will continue to service the product and Manage redemptions paxos also assured us That funds are sefu and fully covered by Reserves in their bank with their Reserves audited many times by various Audit firms already my two thoughts on This would be one paxos is a fully Regulated company in the US so I would

Tend to believe CZ that funds are would Probably be safe of course you make your Own decisions but two why why is busd Being targeted at all well regulator Nydfs says that paxos didn't administer Busd in a safe and sound manner okay so What does that mean what didn't paxos do That wasn't safe and sound in the Regulator's eyes CZ finishes by stating This On the alleged SEC versus paxos lawsuit I have no information about it other Than the public news articles the Lawsuit is between the usscc and paxos So binance the entity is not being sued CZ also says I'm not an expert on U.S Laws but I personally agree with miles's Logic and Miles was essentially saying The SEC labeled busd an unregistered Security in assuming the issuer but how On Earth is a stable coin considered a Security but if a stablecoin is labeled An unregistered security That could be bad If busd is ruled as a security by the Courts it will have profound impacts on How the crypto industry will develop or Not develop and the jurisdictions where It is ruled as such and you may remember About five months ago binance flat out Stopped supporting usdc and made their Main trading pair on the most popular Exchange busd so they Auto converted all Their customers Holdings in the three

Rival Sable coins usdc Pax dollar and True USD into busd is this the United States way of destroying binance through These secondary measures of course this Won't destroy them this is just a heavy Annoyance and CZ is clear that binance Will continue to support busd for the Foreseeable future we do foresee users Migrating to other stable coins over Time we will make product adjustments Accordingly EG move away from using busd As the main pair for trading so this is A dark day for now for busd this is an Ongoing story make sure you click Subscribe you do not want to miss a Daily video the full interview with Raul Paul so good drops tomorrow hey by the Way join us for Bitcoin 2023 the largest Crypto conference in existence so many Great speakers use code altcoin daily For 10 off your ticket linked down below