a research report by bernstein Suggested regulatory action taken recently against binance usd bus/usd Stablecoin and its issuer paxos is specific to BUSD and cannot be Applies to other stablecoins Like usd coin USDC/USD,
What happened: Some in the industry were concerned that the stablecoin and custody rules were at risk, but the issuer of USDC, circlesaid it has not received any notice from the US Securities and Exchange Commission.
The proposed custody rule change is favorable to bank custodians, which is good news for crypto custodians like Anchorage Digital that have bank charters.
Despite short-covering, the crypto market has seen significant gains this week, with a total market cap of around $1.2 trillion.
The report also states that bearish crypto investors have overlooked healthy user trends on-chain and that the layer 2 ecosystem is vibrant, with increased adoption of cheaper transaction costs and new app deployment.
Asia market status: According Per a CoinDesk report, Bernstein noted that regulatory murmurs from Hong Kong have been purely positive, and norms were expected to ease.
The research further suggested that while the US regulatory environment for cryptocurrencies may seem challenging, the situation in Hong Kong is more positive. As a result, the market is likely to be led by Asia until the regulatory landscape in the US stabilises.