Unstablecoins: Depegging, bank runs and other risks loom By Cointelegraph

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Unstablecoins: Depegging, bank runs and other risks loom

Published Mar 01, 2023 09:30AM ET Updated Mar 01, 2023 09:40AM ET

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Unstablecoins: Depegging, bank runs and other risks loom

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Stablecoins are entering a period of great uncertainty following the U.S. Securities and Exchange Commission labeling BUSD an unregistered security and ordering Paxos to stop minting new tokens.

Do these moves signal a wider war by U.S. regulators on stablecoins? Could the SEC declare all stablecoins securities, or is BUSD a special case?

Independent crypto reporter Amy Castor, who has been covering cryptocurrencies since 2016, believes the BUSD crackdown is aimed squarely at the worlds largest crypto exchange, Binance:

BUSD has looked more wobbly than is ideal lately, but it’s nothing too serious so far. (Coinmarketcap)

The market for stablecoins as of Feb. 10, 2023. Source: CoinGecko

Stablecoins are tokens most often pegged to the dollar. Source: Pexels

Tether says it has reduced its risky commercial paper to zero. Source: Tether

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Unstablecoins: Depegging, bank runs and other risks loom

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