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 an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
