SEC Drops Investigation on Paxos' BUSD Stablecoin

SEC Drops Investigation on Paxos' BUSD Stablecoin

The US Securities and Exchange Commission (SEC) has decided not to pursue enforcement action against Paxos following an investigation into the stablecoin Binance USD (BUSD). Paxos received a formal termination notice from the SEC on July 9, signaling the end of the probe, which was initially triggered by the SEC's concerns that BUSD might be classified as a security.

Paxos welcomed the decision, claiming it would boost stablecoin adoption and improve financial systems. This raises concerns about the SEC's stance on stablecoins, with lawmakers debating who will be the primary regulator for stablecoin issuers. SEC Chairman Gary Gensler has previously compared stablecoins to money market funds and other securities based on their traits.

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House Fails to Overturn Biden's Veto of anti-SAB 121

US lawmakers failed to override President Biden's veto of a measure to overturn the crypto accounting bulletin SAB 121, falling short of the two-thirds majority needed in the House with a vote of 228-184. The bulletin requires firms that custody crypto to record customer holdings as liabilities, a rule criticized for potentially hindering banks from safeguarding digital assets.

The resolution had previously passed both chambers but was vetoed by Biden, who emphasized the importance of SEC oversight for investor protection. Despite the SEC describing SAB 121 as non-binding guidance to enhance disclosures, critics, including House Financial Services Committee Chair Patrick McHenry, saw the veto as a preference for bureaucracy over innovation.

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OKX Picks Malta as Hub to Comply With EU's MiCA

OKX, the world's second-largest cryptocurrency exchange, plans to establish Malta as its European hub to comply with the new Markets in Crypto Assets (MiCA) regulatory framework. This shift marks a change from their previous plan to make France their EU hub, where OKX has been registered with France's financial regulator since December 2023.

Compliance in Malta is perceived as more lenient, which is a concern for OKX as it seeks to strengthen its EU market position. Registering in one of the EU's 27 nations will get companies a CASP license. With Malta updating its crypto regulations in alignment with MiCA, OKX is hiring for key positions in compliance to prepare for the regulatory changes set to take effect in December fully.

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Bitget Reports $700M Inflows and 2.9M New Users in Q2

Crypto exchange Bitget reported a $700 million capital inflow and a 50% increase in website traffic for Q2 2024, attracting 10 million monthly visitors and 2.9 million new users. Spot trading volume rose by 10% from Q1. The exchange's Bitcoin, Tether, and Ether holdings grew by 73%, 80%, and 153%, respectively. The company also partnered with KYC provider Sumsub to combat deepfake scammers.

Bitget partnered with Turkish athletes as part of its campaign with Lionel Messi and launched a $20 million ecosystem fund with Foresight Ventures to support The Open Network (TON) projects. The exchange maintains proof-of-reserve ratios above 100% and a protection fund valued at over $420 million, ensuring additional user security and transparency.

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Data of the day

According to a report by CCData, the total market capitalization of the stablecoin sector increased by 0.53% in June to reach $161 billion, marking its highest level since April 2022 after nine consecutive months of growth. Despite this rise, the growth rate has decelerated since May, aligning with a downtrend in digital asset markets and reduced capital inflows.

Additionally, trading volumes for stablecoins on centralized exchanges fell by 18% in June to $970 billion, marking the third consecutive monthly decline in trading volumes.

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More breaking news

• German government now has less than 5,000 BTC after transferring another 10,627 BTC, worth $615.3 million, to Bitstamp, Kraken, and Coinbase.
• MicroStrategy, a business intelligence firm listed on the Nasdaq and a large Bitcoin holder, has announced a 10-for-1 stock split of its stocks.
• Compound Finance's website appears to have been compromised, so users are advised to avoid it, according to cryptocurrency investigator ZachXBT.
• Celer Network, an interoperability protocol, has issued a warning about a possible DNS hijacking attack that could affect several crypto projects.
• Donald Trump, the presumed Republican presidential nominee is scheduled to speak at the Bitcoin 2024 conference in Nashville on July 25–27.

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