THE BINANCE USD STABLECOIN (BUSD)

The SEC is going after Binance now, they when after Kraken last week. This week they are going after BUSD stablecoin. January inflation rate slows down to 6.4%, which is still a very high number. That is only down from 6.5% in December and that means we dropped by 0.1%. Of course, that 40-year high of 9.1% back in June was high but 6% inflation is still very high. It is way above the FED target which is 2%, even though we came down last month, which is good for the markets. We are still trending in the right direction but a little bit slower this time compared to last time. However, on a month-by-month basis, the price did increase by 5% in January to historical data of 1.1% back in December. Overall, we are continuing to move in the right direction but that slowdown will be weighing heavily on some people's minds in the markets.

---

Singapore's biggest bank DBS, they have been into Bitcoin for a while now launching various products for their customer. They are now applying to get a crypto license in Hong Kong to start offering crypto services over there. Hong Kong how to release Bitcoin and Ethereum feature ETF product. We have companies trying to get Bitcoin spot products launched in Hong Kong. China's window of the world will be more crypto-friendly which could bring a lot of China's capital into Hong Kong and Singapore's DBS bank is looking over thinking that wants a piece of that. That is an interesting story because one of the biggest banks in east Asia is looking into the biggest financial part of Asia and going and winning it to get that part of the Bitcoin games that are about to go on there.

---

The SEC is coming after the BUSD stablecoin arguing that it is a security. The Binance USD stablecoin (BUSD) stablecoin is issued by the Paxos company. Paxos is one of the most regulated companies that have all the official licenses that are necessary. It is regulated by the Europe Department of Financial Services and yet this is who they are choosing to go after. It is weird to think BUSD is security because there is no expectation of profit when you hold on to a stablecoin. Last week we saw the SEC going after the Kraken exchange for offering staking service to people. There is nothing wrong with staking, it is not a crime to stake your token although it is now been criminalized by the SEC in the United States. Holding stablecoin is now a crime but the SEC is trying to argue about this. This case is going to go to court, Paxos said they are going to be filing this.

Reference