Quote from: dbshck on February 13, 2023, 02:48:04 PM

Quote from: tiCeR on February 13, 2023, 09:17:12 AM

What I find a bit odd is that BUSD gets targeted first. What about Tether and USDC?

Right, I'm curious about this as well. USDT and USDC are much larger than BUSD, why are they going after BUSD first?

Quote from: talkoncrypto Official on February 13, 2023, 08:28:21 AM

Now what will be the consequences according to you:

1.. Binance will have to undergo liquidity issues

2. Will it have a major impact on Bitcoin Prices

Any other please share your opinion...

Paxos is just halting the issuance of new BUSD, they will still continue redemption. So a liquidity issue for Binance is unlikely here.

Yes redemption is going on and I am asking myself whether the SEC could even put those operations on halt at once entirely. Wouldn't this usually be against their obligation to protect consumer interests? That would lead to a frenzy and a bank run at whatever exchange is still accessible and paying out BUSD.

Quote from: jackg on February 13, 2023, 01:59:59 PM

Quote from: tiCeR on February 13, 2023, 09:17:12 AM

The last word hasn't been spoken here yet if I understand correctly that Paxos has 30 days to respond and convince the SEC otherwise.
What I find a bit odd is that BUSD gets targeted first. What about Tether and USDC? This may just be the beginning of a wave of lawsuits against stable coin providers. I do get Armstrong's point that attacking regulated stable coin providers will only lead to people using offshore services, thereby increasing overall risk.

As a bit of a lucky bunch, I reckon it's the worst stablecoin for actually being backed by anything of value. USDT recently publicised it's financial statement to the public for last year (I think) I saw it in another thread recently, USDC is managed by coinbase and another firm so it seems the safest of them all. (I've excluded dai as I don't think I fully understand it).

There's also the case that binance said any usdt or usdc deposited there would be converted to busd, I think that also makes it much riskier than usdc and usdt because of that (you're relying on multiple assets).

@jackg I just checked out a couple of sources and it seems that BUSD is by no means the worst in terms of being backed by anything of value. BUSD is essentially 100% backed by US Treasury Bills and US Treasury Debt (with overnight maturity):

While this is how Tether is backed as per their report from December 2022:

Unless I am getting anything wrong here, it looks to me as if BUSD is at least as fine as Tether. Tether has relatively more positions that seem to come with weaker insurance.