It was recently announced that the SEC had been scrutinizing Binance USD and Paxos, after which the cryptocurrency exchange decided to mint around $50 million worth of TrueUSD tokens. This transaction took place on the 16th of February, according to data that was derived from Etherscan, and also came just a few days after Chanpeng Zhao, the CEO of the cryptocurrency exchange stated on Twitter Spaces on the 14th of February that the cryptocurrency was looking towards diversifying the stablecoin holdings far away from BUSD.
Despite having minted around $50 million in TUSD from the smart contract of the TrustToken platform, CZ went on to state that the recent regulatory action by the New York Department of Financial Services and the United States Securities Exchange Commission over a period of time could lead to major fall in the dominance of stablecoins that have been backed by the American dollar.
Binance USD Could Be Looking At Other Options
The CEO of Binance stated that with the current stance taken up by the cryptocurrency regulators on the stablecoin, it was quite evident that the industry would be moving away from a stablecoin that wasn’t backed by the US Dollar, back to algorithmic stablecoins.
He went on to add that there were multiple agencies that had been putting some pressure on that- and this would simply result in the stablecoin market shrinking at a rapid pace. The CEO further believes that this has prompted the entire industry to start looking for different options in different places- and they are now currently looking up other options.
Although the CEO believes that Binance would be able to provide the cryptocurrency industry with more support for the USD coin and Tether over a comparatively short period of time- this expectation will definitely go down in time- as people were looking to explore more yen-based and euro-based stablecoin.
