IMF Managing Director talks cryptocurrency regulations, Coinbase suspends trade in Binance USD

SEC Chair's Opinion on Crypto Assets as Securities Stirs Controversy Among Lawyers and Experts

Gary Gensler, SEC Chair, reiterates view that all cryptocurrencies except Bitcoin are subject to US securities laws, arguing that crypto projects aim to attract investors into buying tokens, making them securities. However, lawyers dispute Gensler's claim, stating that the SEC has no authority to regulate crypto assets until they are individually classified by the court.

SEC Commissioner Hester Pierce urges Congress to expedite the legislative process for official crypto asset classification, while the SEC will continue its enforcement actions against crypto assets until then.

IMF Prefers Cryptocurrency Regulation Over Outright Ban, Says Managing Director

During the G20 finance ministers meetings in India, Managing Director Kristalina Georgieva of the International Monetary Fund (IMF) expressed a preference for regulating cryptocurrencies instead of enforcing an outright ban. According to Georgieva, the agency is in favour of regulating the digital currency space, with its first objective being to distinguish between central bank digital currencies supported by the state, and publicly issued cryptocurrencies and stablecoins.

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While Georgieva warned that the option of banning cryptocurrencies remained on the table if they posed a greater risk to financial stability, she suggested that regulation was a better option due to predictability and consumer protection.

Coinbase Suspends Trade in Binance USD Stablecoin Due to Regulatory Investigation

Coinbase, the second-largest crypto exchange globally, will stop trading Binance USD (BUSD) stablecoin from March 13, due to US regulators investigating BUSD as a possible unregistered security. After reviewing BUSD, Coinbase stated that it no longer meets the listing standards.

BUSD, the third-largest stablecoin, currently holds a market capitalization of $10.6bn, according to Coinpaprika
. Paxos, the operator of BUSD, received a Wells notice from the US Securities and Exchange Commission, indicating possible enforcement action, earlier this month.