The beginning of this year has been fruitful for the cryptocurrency market, signs of price recovery have been shown in cryptocurrencies, but the effects of what has happened with FTX have not stopped wreaking havoc on the crypto market And it seems, regulators in the United States have set their sights on stablecoins.
On this occasion, from the New York Department of Financial Services They have notified Paxos, which is the company dedicated to the issuance of BUSD, to stop issuing the Binance token correlated to the dollar because of the weight of an investigation dating from 2022.
On this spectrum, BUSD’s market cap has been affected since thenbut from Cointelegraph we have contacted the CTO of Brighty, Nikolay Denisenko, to find out the opinion from the crypto business environment, and Has expressed “the trend of pressure on stablecoins is cause for concern”.
He further added that does not consider that BUSD holders are concerned or greatly affected by the fact that the token issuance is haltedconsiders that the mechanism that has been proposed for the issuance of BUSD responds to a mechanism “as less disturbing as possible”.
showed real concern about the regulatory environment in its contextadding that “If a regulatory court rules that BUSD is a security, other stablecoins like USDT and USDC could also be affected.”.
Consider further that the biggest drawbacks will be seen on the DeFi ecosystem, projects that depend on BUSD to be provided with liquidity and at the same time considered a store of valuewill be, in Nikolay’s opinion, those that may present themselves with difficulties to continue operating effectively, which can be translated as “a loss of trust in the Binance Smart Chain ecosystem”
He further added that, although it is difficult to make a forecast about the price of the token, he considers that “it is unlikely that we will see a significant drop in the near future”. What is certain is that up to now, market capitalization has started to decline for BUSD.
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