- Binance CEO agrees that the absence of BUSD would put BNB in a better position.
- Crypto influencers argued BNB grew 6% despite the regulatory action against BUSD.
- The US SEC argued BUSD issuer of selling an unregistered security.
A crypto trader with the username ReetikaTrades on Twitter theorized that the absence of the Binance stablecoin, BUSD, on the market would put the Binance coin BNB in a better position. The crypto trader expressed this sentiment while reacting to a view that suggested the price of BNB went up by 6% despite the recent regulatory action against BUSD.
“They don’t know less BUSD use [means] bullish BNB,” she argued — people would “need to buy and hold more BNB for fees discount” on the spot market.
Surprisingly, Changpeng Zhao, the CEO of Binance, supported the theory by responding with a big grin, adding, “Interesting take. Never even thought about this angle.”
The crypto influencer who started the conversation had contended that the BNB rise, in defiance of regulatory actions, represented a different dynamics from what was obtainable in the market a couple of months ago. In the past, the actions of digital asset regulators often sparked fear, uncertainty, and doubt, causing prices to crash.
However, according to data from the market tracking website, CoinMarketCap, BNB is up by over 8% in the last 24 hours. Bitcoin (BTC) even broke a new price point after gaining over 10% in the past day.
Early this week, the US Securities and Exchange Commission (SEC) sent a Wells Notice to Paxos Trust Co, the issuer of BUSD, informing it of an impending enforcement action for selling an unregistered security.
A Paxos spokesperson disagreed with the SEC and stated that the firm would prosecute the matter vigorously if forced.