Stablecoin Surge: New Bill Spurs Bank Flood
S&P Global shared a research proposal introduced to the Senate outlining Payment Stablecoin Act that could encourage banks in the US.
Binance announced the news, explaining that it is joining the number of crypto businesses that are leaving the Canadian marketplace. The new regulations ban crypto exchanges and firms from offering Canadian clients any sort of “crypto contracts” that is a security or derivative. By defining stablecoins as securities, this restricts users from making any trades or buying or selling any stablecoins. Since the new law has been put in place, Binance has withdrawn from the market as well as OKX, dYdX, and Paxos.
While thanking regulators and lawmakers that worked hand-in-hand with the exchange, Binance ultimately noted:
“Unfortunately, new guidance related to stablecoins and investor limits provided to crypto exchanges makes the Canada market no longer tenable for Binance at this time. We put off this decision as long as we could to explore other reasonable avenues to protect our Canadian users, but it has become apparent that there are none.”
Unfortunately, today we are announcing that Binance will be joining other prominent crypto businesses in proactively withdrawing from the Canadian marketplace.
We would like to thank those regulators who worked with us collaboratively to address the needs of Canadian users.…
— Binance (@binance) May 12, 2023
Binance continued that they “do not agree with the new guidance” but hope that they will be able to maintain discourse with the Canadian regulars. This would be in order to help create comprehensive regulatory infrastructure to “someday return to the market when Canadian users once once again have the freedom to access a broader suite of digital assets.“