Cryptos Plunge Below $1 Trillion Amidst Fresh Regulatory Action

Cryptocurrencies plunged more than 2 percent in the past 24 hours amidst reports of fresh regulatory crackdown on the industry, this time on the BinanceUSD stablecoin. Market capitalization fell below the psychological $1 trillion level amidst declines in most of the top-ranking cryptocurrencies.

The Wall Street Journal had earlier reported that the Securities and Exchange Commission has told crypto firm Paxos Trust Co. that it plans to sue the company for violating investor protection laws. According to the report quoting people familiar with the matter, the SEC’s enforcement staff issued a letter to Paxos known as a Wells notice, which the agency uses to inform companies and individuals of a possible enforcement action. The notice alleges that Binance USD, a digital asset that Paxos issues and lists, is an unregistered security.

The Wall Street Journal has also reported that the New York Department of Financial Services ordered Paxos Trust Co to stop creating more of its BUSD token. Paxos would continue to manage redemptions of the product.

Amidst the above developments, Paxos, a regulated blockchain and tokenization infrastructure platform, announced on Monday that it would end its relationship with Binance for the branded stablecoin BUSD. Effective February 21, Paxos would cease issuance of new BUSD tokens as directed by and working in close coordination with the New York Department of Financial Services (NYDFS). The announcement further states that Paxos Trust, a regulated institution overseen by the NYDFS and audited by a top-four accounting firm, would continue to manage BUSD dollar reserves. It also clarified that all BUSD tokens issued by Paxos Trust have and always would be backed 1:1 with US dollar-denominated reserves, fully segregated and held in bankruptcy remote accounts.

Bitcoin dropped 1.2 percent overnight to $21,650.90, after trading between a high of $22,060.99 and a low of $21,539.50 in the past 24 hours.

Ethereum’s overnight losses were higher at 3 percent and the leading alternate coin is currently trading at $1,485.90. ETH ranged between $1,545.55 and $1,477.73 in the past 24 hours.

10th ranked Polygon (MATIC) lost the most among the top 10 cryptocurrencies, shedding more than 9 percent in the past 24 hours.

Down the hierarchy, 60th ranked Mina (MINA), a Proof of Stake coin topped overnight losses with a 17-percent overnight decline. 30th ranked Hedera (HBAR), 61st ranked ImmutableX (IMX), 78th ranked Loopring (LRC), 79th ranked Optimism (OP), 86th ranked Singularity NET (AGIX), 40th ranked The Graph (GRT), 92nd ranked Rocket Pool (RPL) and 31st ranked Lido DAO (LDO) have all dropped more than 10 percent in the past 24 hours.

81st ranked Binary X (BNX) withstood the sell-off to rise more than 13 percent in the past 24 hours.

For More Cryptocurrency News, visit

Source: Read Full Article