The series of rises continues in most cryptocurrencies, especially Bitcoin, with an increase in investors’ appetite for risk, despite US financial regulatory moves targeting the basis of this market, which are stable currencies.
And after the significant rises of the cryptocurrency market in January, which exceeded 40% for bitcoin, the main driver of this market, it seems that the momentum of these rises has not subsided yet, despite the regulatory tendencies, led by the US, to clamp down on this market.
In recent days, the Securities and Exchange Commission (SEC) and the New York State Department of Financial Services (NYDFS) have ordered the authorized company PAXOS to stop issuing the BUSD stablecoin, which is affiliated with the world’s largest exchange, Binance.
The attack by the financial oversight authorities came under the pretext of classifying this currency as an unlicensed security, and this may open the door wide for the classification of all stable currencies as securities, and in this case the SEC is responsible for regulating and even stopping it in the event that it violates the rules of the Authority.
As soon as the decision came to stop PAXOS and the BUSD currency, Binance quickly paid the price, with a sharp decline in its currency BNB, which exceeded 15%, but the founder CZ quickly tweeted to save the situation and clarify that Binance may look for another stable currency away from the United States to guarantee operations and customers, which was reflected in stopping BNB bleeding at least for now.
The financial regulators’ targeting of the crypto market this time backfired, as the ban on BUSD prompted investors to transfer their holdings in it to another safe cryptocurrency, and of course bitcoin was the best option next to the stablecoin USDT, which supported the rises on bitcoin.
The movement of the cryptocurrency market depends on the risk appetite of investors, which was supported by the rise in financial markets, the decline in inflation, the Federal Reserve’s easing of its rhetoric and the raising of interest rates, but the regulatory authorities still see that regulating the market is a top priority in order to combat theft and money laundering.
