• SEC ruling on BUSD has been challenged by Truflation CEO, Stefan Rust.
• The move came after Paxos, the US-regulated issuer of the stablecoin, was ordered to stop minting new BUSD by the New York Department of Financial Services (NYDFS).
• Rust believes that the SEC’s action against Paxos is politically influenced and does not make sense legally.
SEC Ruling on BUSD Challenged
The US Securities and Exchange Commission (SEC) has recently called into question the Binance USD (BUSD) stablecoin issued by Paxos, a US-regulated company. However, Stefan Rust, CEO of Truflation and former CEO of Bitcoin.com, believes there is a political angle to this action and it makes no sense legally.
Paxos Ordered to Cease Issuing New Tokens
In response to the SEC’s ruling about BUSD being a security, the New York Department of Financial Services (NYDFS) ordered Paxos to cease issuing new tokens. In response to this order, Paxos announced it would terminate its relationship with Binance but maintain that BUSD is not a security. The company also said it would litigate against the SEC as far as possible.
Potential Political Influence
Rust believes that there could be some political influence behind this decision as trading volumes for USDC – which is favored by major financial institutions like BlackRock – have been dwindling in comparison to USDT and BUSD over recent months. He suggests that this may have triggered an unfavorable reaction from certain groups within the US government or economy.
Binance Continues Support for BUSD
Despite these developments, Binance has decided to continue supporting their own stablecoin, saying it would look at alternatives as a new main trading pair instead of USDC if necessary. This demonstrates their commitment to making sure their customers are able to access their services using a variety of digital assets without disruption or limitation due to regulatory decisions outside of their control.
Truflation CEO Remains Critical
Despite these measures taken by both companies involved in this matter, Rust remains critical about the SEC’s ruling and its potential implications for cryptocurrency users in general. He stresses that any decision which limits people’s ability to access digital assets should be carefully considered before being implemented so as not to stifle innovation and progress within this growing industry sector unnecessarily or unduly restrict access for law-abiding citizens worldwide who may wish use cryptocurrencies responsibly and ethically.
