2023-02-14 11:05:06
Crypto market risks become elevated with SEC and BUSD uncertaintyOn Friday SEC
cracked down on Kraken's staking. Crypto exchange agreed to shut down its U.S. cryptocurrency staking service and pay $30 million in penalties. On top of that, yesterday morning, NY regulator ordered BUSD issuer, Paxos to stop issuing the aforementioned stablecoin.
Here are a few thoughts from CZ:• BUSD is redeemed by Paxos, funds are safe and fully covered by reserves in their banks.
• Minting of new BUSD was ceased by the New York Department of Financial Services (NYDFS).
• Lawsuit between the US SEC & Paxos: can BUSD be security without meeting the Howey Test criteria?
• Binance will continue to support BUSD, but user migration to other stablecoins is expected.
Meanwhile, Paxos announced the halting of the new BUSD minting. BUSD will remain fully supported by Paxos and redeemable to onboarded customers through at least February 2024.
Last but not least, today is the release of the January CPI report, or US inflation in simple words. Annual CPI is expected to decline to 6.2% from 6.5% in December.
What are your strategies in the period of increased volatility? Share your thoughts in the comments.
#market
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