Could Binance USD [BUSD] be the next SEC casualty as regulator digs deep into…

ambcrypto.com:

Binance USD [BUSD] holders might be faced with a heavy cross to bear after the U.S. SEC notified its issuer of a potential probe. Wall Street Journal (WSJ), who seemed very familiar with the matter , reported that Paxos Trust Co. had received a letter pertaining to the issue from the regulator.

Read Binance Coin [BNB] Pr​​ice Prediction 2023-2024

But why is the SEC putting BUSD at risk and its holders in fear? According to the 12 February report, the regulator plans to sue the firm for issuing unregistered security and violating its investors’ protection laws.

This new probe serves as the third clampdown on cryptocurrencies in the last two weeks. A few days ago, crypto exchange Kraken had to suspend its staking activities after a $30 million settlement with the SEC. Days later, Coinbase CEO alerted the crypto community about a possible witch hunt on Ethereum [ETH] staking too. 

With the WSJ revelation in play, it could mean woe for the seventh-placed cryptocurrency in market value and third-largest stablecoin. However, retail holders might not be the most affected if a judgment favors the SEC.

Binance, who also doubles as Paxos’ partner, could be the biggest victim. According to Nansen , 90% of BUSD is held on the exchange. This implies that both institutional and retail prefer to store the stablecoin on its issuer-partner exchange.

*The value of the token holdings in the wallet addresses provided by the exchanges pic.twitter.com/DT39t8QQZ6

— Nansen