Paxos Takes the SEC as Asian Crypto Trading Volumes Rise 80% – Blockchain News, Opinion, TV, and Jobs
By Marcus Sotiriou, Market Analyst at a publicly listed digital asset broker GlobalBlock (TSXV:BLOCKS)
After Bitcoin’s incredible rally to $25,000 last week, it is currently consolidating around $24,500. Among the recent regulatory bouts in the US, crypto investors have not been swayed.
The SEC issued a Wells Notice last week for Paxos (issuer of BUSD), which has direct ties to global digital asset platform Binance. The SEC notified Paxos that they planned to sue them for issuing BUSD, allegedly because BUSD is a security. However, it was reported today that Paxos said it was ready to challenge the SEC for its claim that BUSD is a security. Although the details of the SEC case have not been released, I think Paxos has a great chance to win this challenge. This is because all definitions of securities involve their use as investments with the expectation of a return. Stablecoins like BUSD, with no upside, cannot expect to gain, so it’s hard to see how/why the SEC would make this claim. This could potentially be a backdoor for pursuing Binance, as Paxos is the only American-based company that is directly affiliated with Binance.
DBS, the largest bank in Southeast Asia, has revealed that the trading volume of its digital asset platform will increase by 80% in 2022 while the trading volume of ETH will jump 65%. A DBS executive said, “We believe the market has decisively shifted its focus towards trust and stability, especially after the various scandals that rocked the industry.”
Could the next bull run start in the East, amidst the lack of clarity for crypto firms in the US? The increase in trading volume on the DBS digital asset platform is a reminder that any government, even the US, that does not provide clear guidance has the potential to be left behind in the fourth industrial revolution.
