BlocksInform
Regulatory action against the BINANCE USD (BUSD) stablecoin and its issuer Paxos was specific to BUSD and cannot be extrapolated to others such as USD Coin (USDC), Bernstein said in a research report Thursday.
Some in the industry had expressed concern that cryptography was "actively de-escalating the banking system, with an attack on stablecoins and safekeeping rules," the report said.
Bernstein points out that circle, the issuer of usdc, he had not received an opinion from the securities commission and the stock market. A stablecoin is a type of cryptocurrency whose value is pegged to another asset, such as the U.S. dollar or gold.
A stablecoin is a type of cryptocurrency whose value is linked to another asset, like the American dollar or gold.
“While the U.S. regulations seem to be getting harder, the regulatory murmurs from Hong Kong seem to be net positive, with expected easing of norms,” the report said, adding that “we would not be surprised if the crypto market is led by Asia to begin with, until the regulatory fears settle down in the U.S.”
The broker notes that there have been large gains in cryptocurrencies this week with total market cap inching toward $1.2 trillion. Sharp price moves are affected by short covering, but the move higher is also “forcing existing crypto investors to dial up exposure with every move,” the note said.
The higher movement is also "forcing existing crypto investors to make up the exposure with each move," the note said. The collapse of crypto exchange FTX triggered a spike in on-chain self custody wallets willing to use on-chain exchanges, according to the note.
The collapse of crypto ftx trading has triggered a spike in chain custody portfolios willing to use chain trades, the note says.
