{"id":85154,"date":"2023-09-29T11:40:55","date_gmt":"2023-09-29T08:40:55","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=85154"},"modified":"2025-09-12T21:35:45","modified_gmt":"2025-09-12T18:35:45","slug":"circle-backs-binance-over-busd-status","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/circle-backs-binance-over-busd-status\/","title":{"rendered":"Circle backs Binance over BUSD status"},"content":{"rendered":"

Buyers of stablecoins <\/a> do not expect profits, hence this category of assets does not correspond to investment contracts. This statement was made by Circle’s chief counsel <\/a> and former head of the CFTC<\/span> Hite Tarbert, according to CoinDesk<\/a>.<\/p>\n

The executive commented on the SEC<\/span>‘s claims against Binance regarding Binance USD (BUSD), which was issued by Paxos on behalf of the crypto exchange. On June 5, the Commission filed a lawsuit<\/a> against the platform and its CEO Changpeng Zhao. The agency has brought 13 counts, including selling unregistered securities, including BNB and BUSD.<\/p>\n

Circle filed a brief with the court, acting as an amicus curiae<\/span>. The company said that financial-services laws should not apply to stablecoins.<\/p>\n

\n

Stablecoins<\/em> themselves do not possess material characteristics of a security under SEC jurisdiction. Decades of case law confirm that the sale of assets, not tied to any post-sale promises or obligations by the seller, is insufficient to constitute an investment contract<\/em>, \u2014 the statement said.<\/p>\n<\/blockquote>\n

In February, the NYDFS<\/span> initiated an investigation into Paxos. The regulator ordered the company to stop issuing BUSD<\/a>. Around the same time, the firm halted its cooperation with Binance.<\/p>\n

The company halted the issuance of new stablecoins in line with the regulator’s instructions. Redeem and conversion operations are supported through at least February 2024<\/a>.<\/p>\n

In March, BUSD’s market capitalization fell below $10 billion for the first time since the end of June 2021. In June, the metric fell to $4.35 billion. By the time of writing, it had fallen to $2.26 billion, according to CoinGecko<\/a>.<\/p>\n

Regulation of stablecoins has been called for by both industry representatives and the head of the Fed<\/span> Jerome Powell<\/a>.<\/p>\n

In June, the House Financial Services Committee introduced the third version<\/a> of a proposed stablecoin bill.<\/p>\n

Analysts at Bernstein previously projected that<\/a> the capitalization of the stablecoins segment would rise from the current $125 billion to $2.8 trillion within five years.<\/p>\n","protected":false},"excerpt":{"rendered":"

Buyers of stablecoins do not expect profits, so this asset class does not meet investment contract criteria. This statement was made by Circle’s chief counsel Hite Tarbert.<\/p>\n","protected":false},"author":1,"featured_media":85155,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[744,1625,1220,36,807],"class_list":["post-85154","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-binance","tag-binance-usd-busd","tag-circle","tag-regulation","tag-stablecoins"],"aioseo_notices":[],"amp_enabled":true,"views":"14","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/85154","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=85154"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/85154\/revisions"}],"predecessor-version":[{"id":85156,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/85154\/revisions\/85156"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/85155"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=85154"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=85154"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=85154"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}