SEC’s latest moves create uncertainty in the crypto world

According to reports, Frank Chaparo, the News Director of The Block, tweeted that the United States Securities and Exchange Commission (SEC) was engaged in an …

SEC’s latest moves create uncertainty in the crypto world

According to reports, Frank Chaparo, the News Director of The Block, tweeted that the United States Securities and Exchange Commission (SEC) was engaged in an absolute struggle. After the United States Securities and Exchange Commission threatened to sue, Paxos will stop issuing BUSD. I wouldn’t be surprised if they were specially reviewing the USDC. A few days ago, a senior executive of an exchange told me that the Securities and Exchange Commission of the United States was actually implementing its own encrypted version of “Long Knife Night”.

Frank Chaparo: The US SEC is actually implementing the encrypted version of “Long Knife Night”

Interpretation of the news:


The recent tweet by Frank Chaparo, the News Director of The Block, claims that the Securities and Exchange Commission (SEC) in the United States is encountering an absolute struggle. The SEC’s recent threat of a lawsuit against Paxos has resulted in the company halting the issuance of BUSD, a stablecoin that is pegged to the US dollar. The tweet also implies that the regulator may be scrutinizing USDC, another stablecoin. The message is clear – the SEC is taking a closer look at stablecoins, and the crypto industry is becoming increasingly uncertain.

The SEC’s considerations of stablecoins are not surprising since they can pose significant risks to both investors and the broader financial system. Stablecoins are digital tokens that are pegged to a fiat currency, typically the US dollar, to provide stability in their value. They have become increasingly popular, particularly given the volatility of cryptocurrencies such as Bitcoin.

The SEC’s move against Paxos may not be earth-shattering in itself, but it further clouds the already unclear regulatory landscape for crypto assets. Investors and companies in the space are grappling with the tricky issue of how to classify cryptocurrencies, especially when they are used to raise funds. The confusion has led some companies to consider moving to cryptofriendly havens overseas.

The tweet implies that the SEC’s actions may be more far-reaching than Paxos. The reference to the regulator’s “Long Knife Night” is particularly ominous. The term is used to describe a historical event in which a group of political rivals were rounded up and executed during the night in China. It suggests that the SEC may be taking a particularly tough stance on cryptocurrencies and may be considering targeting more companies.

The SEC has been signalling for some time that it will step up its efforts to regulate cryptocurrencies. Its move against Paxos is another example of how regulators are grappling with the implications of the rapid growth of cryptocurrencies. While stablecoins may provide some level of stability in the crypto world, their use remains fraught with risk. The SEC’s recent actions may add an extra layer of uncertainty, but they also underscore the need for better regulation in the crypto space.

This article and pictures are from the Internet and do not represent qiAiAi's position. If you infringe, please contact us to delete:https://www.qiaiai.com/crypto/18.html

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.