It looks like the US government is cracking down on the crypto world again, and it’s putting a bit of a damper on our digital-asset prices. But don’t worry, we’re still hanging in there! As of 1 pm in Tokyo, the largest 100 tokens have added about 1%, and Bitcoin and Ether are holding steady at $21,715 and $1,500.
However, there was a bit of a scare when the New York agency ordered Binance to stop issuing their stablecoin BUSD. Yikes! That definitely caused some panic and sent prices tumbling. But we’re not giving up hope just yet. Binance Coin, the native token of the world’s largest exchange, seems to be bouncing back from an 8% slide on Monday.
The US government’s move against BUSD is definitely casting a shadow over the third-largest stablecoin as well as Binance. Investors are understandably cautious about anything that might hurt confidence in crypto’s biggest trading platform. We all remember the mess that went down with FTX, and that’s still fresh in our minds. The New York State Department of Financial Services has told Binance’s partner, Paxos Trust Co, to put a stop to issuing BUSD due to some unresolved issues with Paxos’s oversight of their relationship with Binance.
But wait, there’s more! The Securities & Exchange Commission is also sniffing around, considering whether or not to take action and call BUSD an unregistered security. Uh oh, that doesn’t sound good.
1/ On what to expect from the SEC:
Despite all the fears & predictions of a "regulatory crackdown" on crypto in the US, & despite historically bad market conditions (to put it lightly), we saw no major gov't actions in H1 2022. I feel good about this.
H2 2022 may be different.
— Jake Chervinsky (@jchervinsky) July 1, 2022
The Crypto Liquidity Situation!
The SEC is proposing some new rules on Wednesday that could make it harder for hedge funds and other players to team up with crypto companies. We’re not exactly thrilled about that, but we’re not going to let it bring us down.
On another note, Binance seems to be having a bit of a tough time. According to recent data, stablecoin outflows hit a one-month high of $587 million on Monday. And get this, overall outflows from the platform totaled around $600 million in the past 24 hours! That’s the highest among 21 different platforms.