Topic: SEC's crackdown on BUSD after banning the Staking on Kraken (Read 121 times)

I do not see a clear effect of this news on the price, we are at the same previous support and resistance level, and therefore there will be no effect on the price.
The biggest problem is its impact on Binance. Are Binance reserves in this BUSD and the extent of its impact on the platform?
In general, the constant thing now is the Fed's policy of drying up liquidity from these central platforms that rely on dollar reserves as the basis for their value.

From what i gathered i thought that service that paying interest is considered would be considered as security. They just attacked "staking" first as it wasn't real staking that was happening in CEXes as in securing the network. CEXes were just paying interest for as a service and called it staking. So technically paying interest as a service would be an investment.

But now SEC claims that Binance USD itself is an unregistered security and they are suing Paxos.
And SEC is supposed to be experts who can define what's a security and what's not.
I guess SEC this is going to court as this is getting weird and i am no expert when it comes to securities laws.


Because they are protecting investors, overseeing the whole securities industry and maintaining fair markets; So that comes with their job description.
They have nothing against cryptos per sē, but now as they are treated as regulated assets, they treat it as anything else in the markets and it seems like an assault to us because for a long time we have flew under the radar of any kind of regulatory treatment.

Imho they most likely don't even have rules for staking, as that's something that hasn't existed in this level before eth2.0. I really thought that they would have just treated it similar to mining, and i still hope so.
 
that's done by participating to network. Just the fact that CEXes are not "staking" them, they are just paying interest and calling it staking.
I am in no way expert when it comes to securites so i am quite baffled why on earth this would apply only to BUSD.

In the AMA on Twitter Spaces last night, CZ also talked about this, there have been several stablecoin projects pegged to Japanese Yen or SGD... have contacted them, and they are researching and ready to cooperate later when Binance breaks up with Busd. And he also recommended that crypto companies should choose countries with more open laws towards cryptocurrencies like Dubai or France, instead of the US as the center.
The recent actions of the SEC are not only aimed at Binance or Kraken, but they are clearly showing their power and want to control the crypto market.

There is a rumor going around right now that Kevin O'Leary and black rock are the ones behind the BUSD hunt down, Kevin did this to get revenge on CZ because of the FTX collapse, I think this makes sense because Kevin said on the video that he won't let this slide, he promised CZ that something will be done and he (CZ) should be ready for him.

It's only a matter of time, we will know what they are hiding if BUSD became the only stablecoin that the SEC hunts down then, this was intentionally.

As far as I know, stablecoin is not a securities since this was not an investment and Right now the BUSD remains stable and it should like this but the we might see the circulation will getting lower since BUSD is not top 5 anymore

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and I don't know WHY the SEC always fights against the crypto space Ripple, Coinbase and now Binance

Can someone explain to me how is BUSD now cosidered as a security but other stable coins are not? Or are they coming after them later? And if so, what happens after they are ruled as securities? Are they just been pulled from the markets?

We understood from all this that Paxos will stop minting more busd, but there are some points that are still somewhat vague:
- Activating the decision will start from next February 23. What if Binance asks to issue more of its currency before that date? Is it not possible to issue any quantity that you may need in the future and freeze it, waiting for the appropriate time to release it?
- Can Binance use another company to issue its currency? Or that it itself develops a team or dedicates a department to supervise the issuance process?
- Is this related directly or indirectly to the step taken by Binance recently, represented in burning part of its busd currency?

There is definitely a storm brewing against a lot of exchanges at the moment and regulators are taking an opportunity to target cryptocurrency users now the price is back down again. However some of these companies did just keep pushing the limits of what is acceptable and eventually they were going to dance over the line. As an outsider it is apparent that many of these crypto asset schemes were just thinly veiled scams or activities that constituted fraud in the past, just with a new style to them. Even more so when they are heavily endorsed by certain celebrities who use their connection to pump up junk schemes that it might be impossible to get out of once you're in.

Could you maybe provide the source for your claim that CZ told Paxos to continue minting BUSD since I have a hard time believing he (or Paxos) would go against SEC order.  After all, CZ said in his Twitter thread that he expects BUSD market cap to start decreasing, users migrating to other stablecoins and even adjust trading pairs on Binance by remocing BUSD as a main trading paid. All this doesn't sound at all to me like he expects Paxos to continue minting BUSD.

Unfortunately this won't make people move away from stablecoins and those who used BUSD will just move to USDT on Tron or some other networks with lower fees.

what you find out is these news pieces do not affect the dentimanets of millions of average minnow/shrimp traders

instead it affect whale sentiment on futures markets
where theiy adjust their weekly bets on the futures market. and then separetly use other invement money and their bots to arbitrage the spot markets to keep the spot markets below that bet limit via causing resistance.. to ensure their bets hit

jan ~13th - 20th~ was the week of $21k resistance (give take 24hours either end)
jan ~21th - 28th~ was the week of $23k resistance (give take 24hours either end)
jan ~28th - feb3th~ was the week of $24k resistance (give take 24hours either end)
feb ~3rd - feb10th~ was the week of $23.5k resistance(give take 24hours either end)
feb ~10th -  is the week of $22k resistance(give take 24hours either end)

you can observe that (negating the bet change-over) when a market keeps wanting to hit the top resistance and get pulled down but there is an obvious horizontal line near the tip. the normal traders want to buy and willing to buy higher. but are having their orders filled without free trade for orders to not get higher

the latest one is 9th-ish to +6ish days (16th-17th) where we will see another resistance step more then likely

So here is a small report on the previous week crack down of SEC on Staking services provided by Kraken and Things could also go bumpy for other exchanges too. Maybe these are fuds, but things may changes so i think we should remain active on any news from SEC.

1. On 9th February, SEC Bans staking of crypto in kraken exchange on in USA. other countries can use the staking service. SOURCE
As the in the pic, after that news price of btc moves down from $23k to lowest of $21,473. well this week comes with some positive vibe but things may go wrong after the news of SEC concerns about USD of Binance (BUSD).
2. Concerns of SEC on BUSD may cause trouble for Binance atleast for the market in upcoming days. i think they are planning to give market, goose bump in this month. Well, As we all know BUSD because most of the people use it me included. well Paxos is the main company minting this token. previous year we have heard many news about paxos and binance as fud was created last year, saying that, busd are not under control of BINANCE instead they are under control of PAXOS, and they said paxos was not registered with sec or whatever. all of it was to spread panic in the market.

And now again SEC is determined to sue Paxos and asked them not to mint any BUSD after 21 February. What are your thoughts on this.
Source 1     Source 2       Source 3     


3. well previous week just like before Binance tried its best to shift the concerns of SEC towards COINBASE platform. as i read some of there article and some of the lines in my interpretation looks like, Binance wants to shift that banning concerns towards Coinbase staking system by saying following lines.
4.Well despite of sec's prohibition on Paxos to stop minting BUSD, CZ of Binance, told that paxos will contune to mint busd.
Well Binance does cover a great analysis about How will these crackdown boost the prices or market cap of Ethereum (decentralized) Source

Well no doubt remains there when these bans on staking would cause many exchanges to bankrupt because of shirftness of investors and stake holders to other platforms. Well, in some ways these bans are also backing the ecosystem like when people tend to go for decentralized platform to stake there assets.

Maybe there are more surprises.