SEC Pressure: USDC and BUSD in Trouble with SEC’s Scrutiny

• The US Securities and Exchange Commission (SEC) recently issued a Wells notice to the BUSD issuer Paxos.
• Since then, the second and third-largest stablecoins, USDC and BUSD, have seen diverse movements.
• According to data provided by Glassnode, both USDC and BUSD’s market caps have dropped while their transfer activities experience a decline or surge.

SEC Issued Wells Notice to Paxos

The US Securities and Exchange Commission (SEC) issued a Wells notice to the BUSD issuer Paxos earlier this month. Changpeng Zhao (CZ), CEO of Binance, broke the news about this issue.

USDC Experiences Decline

According to data from Glassnode, the number of USDC sending addresses has dropped to 1,384.976 seven-day median average – almost a two-month low. At present time, its total market cap is sitting at around $42.7 billion per CoinMarketCap data.

BUSD Transfer Activity Surges

Glassnode’s data also shows that the number of BUSD transfers has plunged to five-month lows – roughly 85.720 seven-day median average. However, its mean transaction volume (MTV) surged up to $886 million – an eight-month high according to Glassnode’s statistics. As of now, BUSD’s market cap has fallen down nearly $6 billion since the SEC Wells notice – currently sitting at around $10.8 billion per CoinMarketCap data.

Circle CEO’s Comments on Stablecoins Regulation

Jeremy Allaire, the CEO of USDC issuer Circle commented that SEC may not be „the right regulator“ for stablecoins monitoring as banking regulators might be more suitable for such task .

Conclusion

The recent SEC Wells notice caused various changes in both USDC and BUSD’s price movement with their market caps dropping significantly or experiencing surges in terms of transfer activities . It remains unclear how this situation will further evolve as Circle’s CEO proposed banking regulators as more suitable for stablecoins‘ regulation rather than SEC itself .