Order to Stop Minting Paxos BUSD May Boost Euro Stablecoins in Crypto Trade
According to blockchain data, the market cap of USDC has decreased from $44 billion to $38 billion, and PeckShield, an auditing and blockchain analytics firm, has reported that Circle and Coinbase burned $4.7 billion of it on Friday.
Binance’s founder, Changpeng Zhao, speculates that Circle may have also been asked to stop minting BUSD after receiving a notice that Paxos was to stop minting. However, there has been no statement from Circle or Coinbase to confirm this.
Although the market cap of USDC has been falling since summer, both Paxos and Circle are regulated by the New York Department of Financial Services (NYDFS), and it would be strange for NYDFS to order Paxos to stop minting without ordering Circle as well.
Tether’s USDT stablecoin, which is based in Europe and not subject to NYDFS jurisdiction, may be the only stablecoin left standing if NYDFS orders Paxos to stop minting.
READ MORE: “Crypto Assets Are Not Securities”, According to New Paper
The recent NYDFS decision without public consultation or debate could hinder innovation in the United States, making it a less attractive destination for crypto trade.
This could lead to increased opportunities for Europe and the euro or the United Kingdom and GBP, as the United States may no longer be a viable option.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
