BINANCE FACES NEW SEC CONTROVERSY! Binance’s BUSD FATAL NEWS

Crypto wasting no time to step into yet. Another dramatic week in terms of crypto news, crypto firm, Paxos faces, s e c, lawsuit over Binance, U S D Token. We’re gonna break down the news, simply talk about is this a reasonable action in terms of s e C and what they’re doing. We’re also gonna look at the Bitcoin charts.

How Bitcoin, how crypto is reacting to this, I think is an in-depth insight that we should really pay attention to, to really help define the state of the crypto markets. And we’re also just gonna talk about this news in general, what it means. Let’s step into it.

Here’s the news. The Securities and Exchange Commission has told crypto firm Pax O’s Trust company, that it plans to sue the company for violating investor protection laws. The s SEC’s enforcement staff issued a letter to Paxos known as a Wells notice, which the agency uses to inform companies and individuals of a possible enforcement action.

Here’s a note. This is over W Blockchain on Twitter. Firms that receive wells notices are allowed to respond in writing and tell the s e c why it shouldn’t. With a lawsuit, Wells notices aren’t a final indication that the s e C will take enforcement action. So it’s, it’s not done yet. It’s not there yet, but it’s already having an impact, which we’re about to look at in one minute, but it’s just not a final indication that the s e C will take enforcement action.

So here it goes on the notices alleges that. Binance, U S D A digital asset that Paxos issues and list is an unregistered security. B U S D is a Binance branded stablecoin peg to the dollar on a 1 21 ratio. Speaking of Binance here, cz over at Binance. This is what he says. In summary, B U S D is issued and redeemed by Paxos and funds are a secure asset fund for users.

We were informed by Paxos. They have been directed to cease. New B U S D by the New York Department of Financial Services and here we go, everybody. This morning Paxos announced it will halt minting new B U S D tokens, effective February 21st. Now I wanna talk about is this just a reasonable thing? And there’s, I’m not the one to offer that opinion, and I wanted to just go over, two tweets from this.

This guy on Twitter, Adam Conch. The fact that these assets hold underlying. Makes them a lot like a money market fund exposing holders to a security even if they don’t earn from it. Making an argument, not one I agree with, he says, but a reasonable enough one, that they can be a security worth fighting tooth and nail.

But everyone who is shrugging this off as the S E c, got it wrong. This doesn’t pass. The Howie test needs to reevaluate. The S e c, believe it or not, has knowledgeable securities council. It’s always good to kind of look at this from an object. Viewpoint. Not get emotional about the news and just start commenting things like, the s e c got it wrong.

I think this is just a great reminder as we navigate through all of these really in-depth topics. These are really big deals. They’re helping to define where we go in this industry. I’m not saying they’re good things happening. These aren’t the, these aren’t the greatest headlines right now, but we have to navigate.

Better to do So objectively, and this is what we’re looking at, we’re, we’re kind of trying to get through this news and we’re seeing it all develop. And I think one thing that I really am interested to see is how crypto reacts. Here’s the thing, I wanna zoom out on this daily chart. This is a Bitcoin chart and all in this bear market, we’ve really had some incredible.

Bearish news, catastrophic news for crypto. You know, we’ve had things like Celsius crash, we’ve had the FTX crash, we’ve had all of these things happening and you can just see these events just plummeting Bitcoin and all the while. One thing, cuz I cover a lot of technical analysis on this YouTube channel, all the while through really some of the worst things happening that we’ve seen in crypto, or at least my years in crypto.

Bitcoin has maintained itself. It has not even dipped as much as it has in prior bear markets. It has maintained its consistency in coming back to this huge 7 86 retracement line. We’ve even most recently bounced out of it in between these two having events, right, that we’re in right now. So there’s such consistency, and my point is this, there’s such resilience.

So when we start actually seeing headlines like this popping up and you can see it, it’s happening right now in the last 12 hours or so, and then we go to the Bitcoin chart and we’re just. At least right now it’s bitcoin’s not plummeting off of this news. It’s, it’s actually resilience even amidst news like this.

So the news looks really, really negative on the zoomed in. When we really start just looking at the headline, it looks extremely negative, but I think it’s important to just take note of the resilience. That Bitcoin is having right now, and I can’t help but question, we go over to s and p 500, we look at the stock market.

The stock market up and green a little bit right now. So it’s almost like as we kind of evaluate things like this, is Bitcoin more concerned or, or more just correll correlated to the stock market, like we often say and it’s just less concerned about these kind of. Zoomed in bearish events. This is something that I’m very interested in tracking because the resilience that Bitcoin has right now, even amidst this very big stablecoin news, I think is pretty impressive.

One thing to note is this, and this is Eleanor over on Twitter, another step in the unilateral effort between the S E C N Y dfs US O C C to blitz crypto Boor. Wells notice is going out in the coming two to three weeks, I’m told. That’s kind of a massive warning. And not only is it a warning that there will be likely more negative headlines for the crypto space, but it’s kind of a warning to get this on our radars.

And this is, this is the way that I’m looking at the markets. This is what I’m personally doing. It’s on my radar as these headlines drop. And we don’t know what those headlines will be. We don’t know what the organization’s s e c goes after will be. We don’t know what the notices will be, but as it all.

What is this chart doing? What does the resilience of crypto look like as we continue to form just this bottom range, as we continue to tell the story of this macro shift from bear market to bull market, how does crypto react? And I think these charts are really important in that regard. Not only that, what is s and p 500?

What is stock market doing and how much of an impact is that having to kind. Hold up, prop up Bitcoin amidst all of this news. So the next couple of weeks going to be extremely interesting. I would be really curious to know your thoughts and the comments below.

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