The Binance USD affair is nothing like a fiasco worthy of Terra USD, which lost its peg to the dollar last May after a few cleverly orchestrated blows by big wallets. As far as BUSD is concerned, it is the order issued by the NYDFS to halt the issuance of this asset that is problematic. At the moment, some enthusiasts are worried: what would be the impacts of this decision on the crypto market?
No “significant structural change” in sight
Wells’ notice issued by the New York regulator against Paxos did indeed land in the sender’s hands. Without waiting, this blockchain company has decided to stop issuing BUSD for February 21.
In a recently published report, Arcane Research studied the possible impacts of the BUSD debacle on the crypto ecosystem.
Here are the crucial points covered in this document.
No major impact on the cryptocurrency market
” This is unlikely to represent a significant and critical structural change for the market, at this time. […]. Enforcement against USDC and non-US-domiciled USDT could have more dramatic consequences, but the focus on BUSD versus USDP might suggest this path is less likely “, specifies the cabinet.
Binance USD case, main target was Binance
By targeting the BUSD issuer, the New York State Department of Financial Services wanted to bring Binance down. Could the Paxos affair be a simple simulation of the Great War to come?
Last Tuesday, CZ claimed that: the “ BUSD is not issued by Binance. We have an agreement to leave them [Paxos] use our brand, but it’s not something we created “.
Is that enough to convince Gary Gensler and his team to leave the most popular crypto exchange alone?
Wind in the wings of bitcoin (BTC)
Bitcoin spot trading volume of BUSD pairs was up 11.6% in the six months. The removal of fees as well as the consolidation of Binance USD pairs would have enabled this development.
In any case, by banning the issuance of Binance USD, US regulators intend to bleed some crypto projects and stablecoins. Note also that the BUSD occupied the 3e place stablecoins just before this decision. USDT would benefit the most.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
