TL;DR

• The SEC has ordered Paxos to stop issuing the BUSD stablecoin and has plans to sue them for selling the BUSD token as an unregistered security.

• There has been a 60% decrease in active BUSD addresses since the end of 2022.

• Most BUSD has simply moved from BUSD, to USDT and USDC (not into other cryptocurrencies or fiat).

Full Story

A few weeks ago we wrote about the 1999 box office hit, Big Daddy SEC vs. Paxos lawsuit.

To recap:

• Paxos is the issuer of Binance's 'BUSD' stablecoin.

• The SEC has already ordered Paxos to stop issuing the stablecoin and has plans to sue them for selling the BUSD token as an unregistered security.

• A ‘security’ is: "Investment of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others."

• Stablecoins are specifically designed to be stable - no loss or profit to be made!

Since then, BUSD has suffered a steep decline in active addresses.

And when we say ‘steep,’ we mean a 60% decrease since the end of 2022.

But here’s the thing.

Most BUSD hasn’t been taken off exchanges and withdrawn into fiat or other cryptocurrencies like Bitcoin. Most BUSD has simply moved from BUSD, to USDT and USDC.

(USDT and USDC are the two largest stablecoins by market cap today).

Which kind of proves the point against the SEC. No one expects to make a profit from moving their stablecoins from one to another.

They’re stable.

We’re not lawyers, but this feels a bit like headhunting for no reason.

(Or maybe they know something we don't).