SEC to Investigate Stablecoins

The U.S. Securities and Exchange Commission is investigating whether stablecoins are among the products that were issued in violation of investor-protection laws. Binance USD (BUSD) is a stablecoin, which is a cryptocurrency that maintains a price of $1. BUSD is issued by Binance in partnership with Paxos and approved and regulated by the New York State Department of Financial Services. Stablecoins make it easier for crypto investors to trade other digital assets. Each unit maintains a value of $1, and traders can use stablecoins as a store of value or use them to pay for other digital assets. Regulating them could take the SEC into the domain of overseeing payment products, for which there is no precedent.