According to Markus Thielen, head of research at Matrixport, the Securities and Exchange Commission (SEC) is not tasked with destroying the market for digital currencies pegged to the dollar.
The ban on the issuance of the stablecoin Binance USD (BUSD) is most likely due to the fact that Paxos did not pay enough attention to this instrument.
With this statement, Thielen commented on the decision of Paxos to stop issuing BUSD from February 21. This is a local problem, and the fiat-backed digital currency market will continue to develop.
The issuer of the token had to regularly monitor the state of the reserves in order to protect consumers.
An analyst at Matrixport noted that $4.8 billion worth of BUSD was placed on the Binance Chain blockchain. US regulators apparently had questions about securing these tokens.
The New York City Department of Financial Services (NYDFS) began to fear that the peg of BUSD to the dollar had been broken.
Nevertheless, Paxos hastened to refute these suspicions and announced the guaranteed backing of each coin. Binance also emphasized that all stablecoins are backed by financial reserves. But these assurances did not convince regulators.
At the same time, Markus Thielen is sure that nothing threatens the rest of the stablecoins if their issuers regularly conduct checks.