The Securities and Exchange Commission (SEC) has always been in the crackdown on crypto companies and the 2023 crypto crackdown started with Kraken. The SEC charged Kraken with failing to register its sale of the cryptocurrency staking program, after which the exchange agreed to shut down the program.
The recent one comes with the crackdown on Paxos, which is a Blockchain and financial institution. Today, the SEC indicted Paxos for issuing and listing the Bianance USD (BUSD) stablecoin. This move has benefited Tether in terms of its peaking market capitalization.
Tether records the highest market capitalization
According to the SEC’s claim, the US dollar-backed stablecoin BUSD is a security and Paxos has taken a move against investor protection law after listing it on its platform. Paxos listed BUSD on February 13, and since then, BUSD has lost its market capitalization by nearly $2 billion after hitting $14 billion as of today.
On the other hand, the second largest stablecoin by market capitalization, USD Coin has seen a drop in supply. Its market capitalization has decreased from $41.29 billion on February 12 to $40.99 billion on February 14. However, the USD retook its range of $41.30 billion on February 15 following the news that Circle was not involved in any legal action.
Interestingly, the SEC’s cryptocurrency crackdown has had a positive impact on Tether, as its market capitalization has increased by almost $69 billion.
This was mainly due to investors’ decision to dump BUSD after Paxos clamped down on the news and moved into Tether USDT. However, this is a developing story, therefore I must keep an eye on further development for results.
This post Tether outperforms Stablecoin in terms of market capitalization
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