The U.S. Securities and Exchange Commission could be gearing up to take action against Paxos, a company that issues a type of cryptocurrency called stablecoin. The move will have major implications for the $137 billion market, experts told CNBC. Stablecoins are a type of cryptocurrency designed to mirror real-world assets such as the U.S. dollar. These stablecoins are often backed by real assets such as bonds or cash in reserve. They have become the backbone of the crypto market as they allow people to trade in and out of different coins quickly without having to convert in and out of fiat currency. (CNBC)

Paxos, a leading regulated blockchain and tokenization infrastructure platform, has responded to the U.S. Securities and Exchange Commission over its issuance of Binance USD “BUSD” stablecoin.

Six days ago, a few hours before the blockchain infrastructure platform Paxos announced it would no longer mint BUSD stablecoins, $2.86 billion worth of BUSD were redeemed. Currently, Binance is the most active exchange trading BUSD tokens, and the stablecoin still commands roughly 10.7% of the crypto economy’s $67.71 billion in global trade volume over the past 24 hours.

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The regulatory hammer has fallen hard and this time it has come down hard on Paxos, the issuer of BUSD. As a result, a bank-run type of event ensued as investors dropped BUSD.

Only days after reports of United States regulatory scrutiny of Paxos and Binance USD (BUSD), cryptocurrency exchange Binance has minted nearly $50 million worth of TrueUSD (TUSD). The transaction took place on Feb. 16, according to data from Etherscan, and also comes two days after Binance CEO Chanpeng 'CZ' Zhao said in a Feb. 14 Twitter Spaces that Binance would look to “diversify” its stablecoin holdings away from BUSD. (Cointelegraph)

“Regulators in general failed to adequately address Celsius [Network], Terra and FTX, and are now going after any of the on-ramps they can to try to reduce access to the system,” Campbell, now an adjunct professor at Columbia University's Business School, said on CoinDesk TV’s “First Mover” on Wednesday.

Paxos, the issuer of the $16 billion Binance USD (BUSD) stablecoin, has burned more than $700 million of BUSD tokens since Paxos announced on Monday that it would stop issuing the cryptocurrency amid mounting regulatory pressure, blockchain data shows.

Bitcoin was up 1.8% over the past day, trading around $22,190 by 3:15 p.m. EST, according to TradingView data. The leading crypto by market cap fell on the news that Paxos was ordered to stop issuing the BUSD stablecoin.

After the cryptocurrency sector was hit by the news that crypto firm Paxos, the issuer of Binance dollar-pegged stablecoin, was ordered by the regulators to halt the BUSD minting, nearly $1 billion in digital assets flew out of the crypto trading platform Binance in a single day.