Adam Cochran believes the SEC suggesting Binance is an unregistered securities exchange on the grounds BUSD is unregistered security is “brutal 4D chess.” He further speculated that Binance has two options – to settle or be open to discovery by a US agency. The former scenario will set a “soft precedent” for the SEC to bully other crypto exchanges in the country.

If the SEC manages to kill BUSD, the implications are many. For one, such a move could “embolden regulators to target other stablecoins in the future.” According to Mohammad Taher Khayami, COO of Dubai-based iTeller, a significant contraction in the stablecoin market could transpire as users become increasingly wary of using these tokens for fear that they could be shut down at any moment. He added,

“This, in turn, could lead to a decline in liquidity and trading volumes across the cryptocurrency market, which would be bad news for Binance and other exchanges that rely on stablecoins to facilitate trades.”