Last night, June 20, investment bank Berenberg published a report on the cryptocurrency climate in the United States. It follows that the Securities and Exchange Commission (SEC) is unlikely to stop at CEX, and the next “victim” of the regulator will be DeFi counterparties and stablecoin issuers.
As a matter of fact, the Commission has already tried to claim its rights to the decentralized finance sector by making a proposal to correct the term “exchange”.
And stablecoins, in turn, serve as the “foundation” of trading activity on the DEX, the article says. report Berenberg. And, of course, this primarily applies to Tether and Circle.
The SEC is looking to box in the DeFi sector to reduce demand for these protocols as an alternative to regulated exchange or banking solutions. And this can be done by blocking the “life flow” in the form of USDT and USDC.
Any regulatory action against both these tokens and the issuing companies will be devastating. For example, in Q1 2023, 27% of Coinbase’s total revenue is interest on USDC reserves.
Bitcoin, in turn, will be positioned by the regulator as an “acceptable alternative”. This also echoes the forecast of an increase in BTC dominance. Earlier, USDT lost its peg to the dollar. At the same time, the Blockworks portal declared about possible pressure on Tether from the federal authorities. Was this a sign of impending disaster?
Source: Cryptocurrency
I am an experienced journalist and writer with a career in the news industry. My focus is on covering Top News stories for World Stock Market, where I provide comprehensive analysis and commentary on markets around the world. I have expertise in writing both long-form articles and shorter pieces that deliver timely, relevant updates to readers.
