The cryptocurrency markets have recently been shaken by another major regulatory push against Binance that sent ripples to the industry. This news seems to have caused liquidations on the firm’s native token, BUSD.
The U.S. commodity futures trading commission (CFTC) has recently made public its intention to file a lawsuit against one of the most important cryptocurrency exchanges in the world, Binance.
BUSD hit as CFTC sets sights on Binance
The announcement has sent shockwaves across the cryptocurrency markets.
After the news of the case became public, the BUSD exchange reserves have reportedly decreased by $500 million since the data from Cryptoquant was collected. This is a big dip, underscoring the effect that regulatory action may have on the bitcoin market.
Binance is a significant player in cryptocurrency; consequently, any regulatory action taken against it will likely affect the projects and partners with which it is affiliated.
The BUSD stablecoin is one of many stablecoins backed by the USD and traded on the Binance platform.
You might also like: OKX expands to Hong Kong, to apply for VASP license
The stablecoin has grown in popularity recently, and its value has risen steadily. Nonetheless, the announcement of the CFTC action has had a considerable influence on the value of the BUSD stablecoin, and it remains to be seen how this will affect its long-term prospects.
What should we expect next?
The case is just the most recent in a string of regulatory measures that have been taken against Binance, as well as other exchanges, who have been the subject of inquiries by a number of agencies located all over the globe.
It has not yet been determined to what extent the lawsuit brought by the CFTC will affect the cryptocurrency markets; nevertheless, it is evident that it has already had a substantial effect on BUSD stablecoin reserves. Regulatory is impacting the cryptocurrency industry as a whole.
Read more: The Crypto Lark says bitcoin breakout could happen soon