While the cryptocurrency industry has been on regulators’ radar over the past years, including major exchanges like Binance, the most targeted aspect is stablecoins. Following the recent saga between Paxos, the issuer of the Binance branded stablecoin BUSD, and the Security Exchange Commission (SEC), the stablecoin market has been bewildered. Investors sought the safest-backed stablecoin to save their funds. According to Binance Chief Executive Officer (CEO) Changpeng Zhao, popularly known as “CZ,” the cryptocurrency industry may soon evolve away from the ubiquitous dollar-backed stablecoin era to stablecoins that are algorithmically backed by other assets. Following the tightening regulation around USD-backed stablecoins, the crypto industry is now looking for other alternatives. As Bitcoinist reported, the U.S. Securities and Exchange Commission (SEC) has increased its actions against crypto companies, such as Paxos and crypto exchange Kraken. CZ said in a Twitter Space Q&A on Tuesday: The amount of pressure put on stablecoins is quite significant. Multiple agencies are applying pressure there. That will shrink the USD stablecoin market, so the industry is exploring its options. Stablecoins are less volatile digital assets backed by fiat currency. Investors use it to reduce their exposure to volatility. Over the past years, stablecoins backed with the United States dollar have been the most popular.
Full story : Binance’s CEO Says Crypto May Move From Stablecoins To These Assets.
