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Regulatory Action Targets BUSD and its Issuer, Paxos, but not Other Cryptocurrencies

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It is reported that Bernstein said in a research report on Thursday that the regulatory action against the Binance USD (BUSD) stable currency and its issuer Pa…

Regulatory Action Targets BUSD and its Issuer, Paxos, but not Other Cryptocurrencies

It is reported that Bernstein said in a research report on Thursday that the regulatory action against the Binance USD (BUSD) stable currency and its issuer Paxos is aimed at BUSD and cannot involve other cryptocurrencies, such as USDC. According to the report, some people in the industry expressed concern that cryptocurrency “is actively withdrawing from the banking system and launching attacks on stable currency and regulatory rules”.

Bernstein: The tightening of the regulation of cryptocurrency by the US SEC is not a threat

Interpretation of the news:


Bernstein, a prominent research firm, has issued a report stating that the regulatory action being taken against Binance USD (BUSD) stable currency and its issuer, Paxos, is specifically aimed at BUSD and cannot involve other cryptocurrencies such as USDC. The report goes on to detail that some people within the industry are expressing concern because cryptocurrencies are “actively withdrawing from the banking system and launching attacks on stable currency and regulatory rules.”

Regulatory action against cryptocurrencies is not a new concept, and these technologies have long been criticized for their lack of transparency and affiliation to the banking system. However, the current regulatory actions targeting BUSD and Paxos seem to be more targeted and specific, indicating that regulators are looking to apply pressure to BUSD and Paxos specifically.

The report from Bernstein suggests that the regulatory action against BUSD is focused on its stability as a currency and as a regulated financial asset, and the fact that regulatory oversight is required, of which BUSD might not be meeting standards. This can be taken to mean that BUSD is not meeting requirements historically put in place to ensure the safety and stability of traditional banking systems.

Furthermore, the report states that the regulatory action against BUSD might not translate to similar action against other cryptocurrencies, indicating that regulators are looking at each cryptocurrency differently based on its unique circumstances and relationships with the banking system. This suggests that drawing broad conclusions about the regulatory environment for cryptocurrencies is not possible at this time, given that regulators will likely continue to target specific cryptocurrencies based on their individual circumstances.

In conclusion, the regulatory action against BUSD and its issuer, Paxos, is a specific and targeted effort that intends to ensure the safety and stability of BUSD as a regulated financial asset. This action should not be taken as a broad statement on the regulatory environment for cryptocurrencies. Instead, regulators are likely taking unique approaches to regulating specific cryptocurrencies based on their unique circumstances.

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