14 Feb 2023
Regulators sharpening their knivesThis has been a challenging week for the industry, with several SEC enforcements coinciding with negative market impulses, leading BTC to fall 5% over the past week.
- In a week influenced by SEC enforcement, BTC fell 5%
- ETH is down 7% after Kraken makes $30m settlement with the SEC and cease staking services for U.S. customers
- Paxos to cease BUSD creation after Wells Notice from SEC. Redemptions will operate until at least Feb 2024
- We view fears of a similar faith to USDC and USDT as exaggerated following Paxos statements of USDP conversion
Kraken’s $30m settlement with the SEC and ceased offering of staking as a service for U.S customers caused a broad negative market reaction. The SEC’s Wells Notice to Paxos related to BUSD, on the other hand, saw a more muted reaction in BTC compared to altcoins, with BNB taking the hardest blow leading to a weekly return of -10%.