đDespite its strong revenues, Paxos lays off 20% of its employees.
â Paxos (#paxos ), the stablecoin issuer, #USDTđ„đ„ , has laid off a large number of its employees.
đą What is the motivation behind this decision, given that the company's finances do not appear to be in a state of emergency?
So we don't know exactly what is driving the wave of layoffs, however, it likely has something to do with stablecoin regulation.
âȘ Paxos was harassed by the US Securities and Exchange Commission (SEC) and forced to stop issuing BUSD, Binance's former stablecoin.
Paxos has just released a regulated stablecoin and appears to be working on a new model to avoid similar pitfalls in the future.
đ Last week, the company released Lift Dollar (#usdl ), a regulated stablecoin that earns rewards for its users.
đŽThis indicates that regulatory initiatives in recent years, as well as those to come, particularly in the European Union, are likely to have an impact on major stablecoin issuers. This is the case in Europe in particular, where mica is raising concern among companies, including #USDTă in particular.
