• The US Securities and Exchange Commission (SEC) issued a Wells notice to the BUSD issuer Paxos earlier this month.
• Since the announcement, the second and third-largest stablecoins have witnessed diverse movements.
• According to data provided by Glassnode, the mean transaction volume (MTV) for BUSD surged to $886.3 million, an eight-month high.
SEC’s Pressure on USDC and BUSD
The US Securities and Exchange Commission (SEC) recently sent a Wells notice to the BUSD issuer Paxos. Following this announcement, both USDC and BUSD experienced significant fluctuations in their market capitalization. Data provided by Glassnode showed that the median average of sending addresses for USDC dropped to 1,384.976 – almost a two-month low – while its total market cap fell to roughly $40.8 billion on Valentine’s Day. At present, its market cap stands at around $42.7 billion as per CoinMarketCap data.
BUSD Transfers Plunge
Glassnode data also revealed that the number of BUSD transfers plunged to five-month lows, with a seven-day median average of 85.720 transfers – down from its previous five-month low of 85.815 observed on October 25th 2022.
Mean Transaction Volume Rises
Despite these drops in transfer frequency and market cap, Glassnode’s data showed that the mean transaction volume (MTV) for BUSD rose significantly – reaching an eight-month high of $886 million since August 23rd 2022; when it was previously recorded at $880 million MTVs for seven days prior..
Binance CEO Comments
The news about SEC’s pressure prompted a reaction from Binance CEO Changpeng Zhao (CZ), who addressed it in a tweet shortly after it was revealed publicly: „the SEC is not the right regulator“ to watch over stablecoins according to Circle CEO Jeremy Allaire; suggesting banking regulators could be more suitable options instead for observing such assets classed as cryptocurrencies within traditional finance circles..
In conclusion, despite some fluctuations following news of SEC’s pressure on both USDC and BUSD stablecoins , there seems to be an overall positive outlook regarding their future potential with many financial industry leaders urging more regulatory clarity moving forward so that they can become more widely adopted across financial systems without fear or risk of legal ramifications or limitations which may come with being classified incorrectly under current securities laws .