• Binance Coin has dropped by over 5% in the past 24 hours following news from US regulators regarding BUSD and Paxos.
• Bitcoin had tapped $22,000 hours before the news, but altcoins reacted even worse, with some dropping by double digits.
• The US SEC is planning to take legal action against Paxos because it allegedly sells unregistered securities in the form of BUSD.
Binance Coin Dumps Below $300
Binance Coin (BNB) has taken a hit after news emerged that US regulators are targeting Paxos and its stablecoin BUSD for alleged sale of unregistered securities. The coin has dropped by over 5% in the past 24 hours, indicating that investors are not taking the news lightly.
Bitcoin Reacts to Regulatory Scrutiny
Bitcoin had been performing well up until this point and had just recently managed to break back above $22,000 after an interest rate hike from the US Federal Reserve. However, when regulatory scrutiny came into play, it caused BTC to fall to a three-week low of $21,400. After a slight recovery at the weekend though, investors were greeted with more bad news when reports surfaced about SEC’s plans for legal action against Paxos and its BUSD stablecoin.
Altcoins Get Hit Harder
The effects on altcoins were even worse than on Bitcoin though as they experienced double-digit drops due to the regulatory uncertainty surrounding BUSD and Paxos. Coins such as HBAR, APT, FTM and GRT all saw large declines due to investor concern over potential repercussions from the US authorities.
US SEC Takes Action Against Unregistered Securities
The US Securities and Exchange Commission (SEC) is now reportedly taking legal action against Paxos for allegedly selling unregistered securities in the form of Binance USD (BUSD). This could have serious implications for both companies involved as well as other crypto firms that offer similar services or products which may be subject to similar regulations.
It remains uncertain how far-reaching this case will be or what kind of impacts it will have on other cryptocurrency businesses operating in or connected with the United States market – only time will tell if further regulation is necessary or if this case is an isolated incident. Investors should keep an eye out for any developments related to this story as it progresses as it could have serious implications for their portfolios moving forward.