The blockchain platform Paxos and the native token of one of the largest cryptocurrency exchange platforms, Binance USD, are currently targets of US regulators (BUSD). The continuous conflict between law enforcement organizations and cryptocurrency businesses has divided the crypto community.
The US Securities and Exchange Commission sent a Wells Notice to Paxos, a blockchain platform, over the weekend. The aforementioned notice claimed that BUSD, Binance’s native coin, which is known to have been produced in Paxos, is a type of unregistered security. On the same day that the stated notice was released the New York Department of Financial Services (NYDFS) also ordered Paxos to stop issuing BUSD.
The Crypto Community’s Reaction
Online buzz has been generated by the news that Paxos is under investigation. Several members of the cryptocurrency community have used the social media site Twitter to express their personal opinions on the matter. The Binance CEO’s creation of “FUD” recently dominated the cryptocurrency Twitter community, however in light of the current situation, this issue was quickly forgotten and internet users are now contributing their own theories regarding the claims that BUSD is an unregistered security.
Miles Deutscher, a crypto analyst, is one of the online users who has voiced their opinions on the matter. He claimed that no one expects to make money while buying a stablecoin. In which he tweeted that the SEC is classifying BUSD as an “unregistered security” and that it is suing book publisher Paxos. On the other hand, he questioned how a stablecoin can be deemed a security since it obviously violates the Howey test criteria.
Additionally, the fictitious trader Tree of Alpha was perplexed and startled about the situation. The fictitious trader enquired as to why BUSD was regarded as a security. Then he asked his followers if they had purchased BUSD with the expectation that it would rise to $2. The trader then contacted Gary Gensler, the chairman of the SEC, and claimed that Gensler is engaged in an “unhinged, unregulated crusade against crypto.”
The Bitcoin (BTC) expert Tedtalksmacro, who was perceived to have underlined that BUSD may not meet the requirements for a security, strengthened these feelings even further. The analyst went on to say that the incident might simply be “an opportunity on Binance.”
