The SEC has officially ended its investigation into Paxos, concluding that BUSD is not a security. Back in 2022, BUSD was a major player among stablecoins, boasting a market cap of about $23 billion.
However, an investigation by the SEC led Binance to delist BUSD and remove it from all trading pairs.
🚨BREAKING: 🇺🇸 SEC officially gives up on stablecoin issuer Paxos investigation, declares $BUSD is not a security. #Bullish 💯
— CoinEcho (@mycoinecho) July 11, 2024
At a time when interest rates stood at 5.5%, the $23 billion in BUSD could have generated approximately $1.265 billion in a year through US bonds. Yet, the investigation significantly impacted BUSD’s presence in the market.
BUSD “Killed” In The Process
Despite the closure of the investigation, BUSD has been effectively “killed.” Its market cap has now plummeted to just $70 million, and its usage has dwindled to almost nothing. The stablecoin market has seen a surge in competition, with the emergence of PayPal’s PYUSD, Ethena Labs’ USDe, Aave’s GHO, and others.
OMG… Back in 2022, $BUSD was a major player among stablecoins, with a market cap of about $23 billion.
Then the SEC stepped in. An investigation led to @binance delisting BUSD and removing it from all trading pairs.
With interest rates at 5.5%, that $23 billion could have… https://t.co/5zqus0UF5x pic.twitter.com/78fTJuCjra
— MOIC Digital | Research (@moic_digital) July 11, 2024
The fall of BUSD underscores the rapid changes and fierce competition within the stablecoin market. While BUSD was once a dominant force, regulatory scrutiny and market dynamics have reshaped the landscape, allowing new contenders to emerge and gain traction.
The end of the SEC’s investigation marks a significant point in the regulatory landscape for cryptocurrencies. However, for BUSD, the damage has already been done. As new stablecoins continue to develop and capture market share, BUSD’s decline serves as a stark reminder of the impact regulatory actions can have on digital assets.
In the evolving world of stablecoins, the fall of BUSD highlights the critical interplay between regulation, market perception, and competition. As the market continues to innovate, the legacy of BUSD will remain a case study in how swiftly fortunes can change in the digital currency space.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!
Image Source: aleksandrasova/123RF // Image Effects by Colorcinch
The post SEC Ends Investigation Into Paxos: BUSD Declared Not A Security appeared first on The Merkle News.