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• Binance Coin has dropped by over 5% following news from US regulators regarding Paxos and the BUSD stablecoin.
• Bitcoin had tapped $22,000 before the news, but has since returned to $21,400 – a three-week low.
• The SEC plans to undertake legal actions against Paxos for selling unregistered securities in the form of BUSD.

Binance Coin Dumps Below $300

Binance Coin has dropped by over 5% in the past 24 hours following news from US regulators regarding Paxos and the BUSD stablecoin. This comes after Bitcoin had tapped $22,000 just hours earlier.

Bitcoin Falls To Three-Week Low

Despite starting off strong this month with a pump above $24,000 for the first time in over five months after an interest rate hike from the US Federal Reserve, Bitcoin failed to continue upwards and returned to $23,000 in the following days. The asset then fell further when the US SEC went after crypto staking, dropping to its three-week low of $21,400.

SEC Takes Action Against Paxos

The weekend was a bit more positive as Bitcoin recovered some ground and went up to $22,000. However at this point reports emerged that the SEC plans to undertake legal actions against Paxos because it supposedly sells unregistered securities in form of Binance USD (BUSD).

Altcoins React Worse Than Bitcoin

Altcoins reacted even worse than bitcoin to this news with HBAR, APT, FTM, GRT among others dumping by double digits.

Conclusion

Despite some initial success this month due to an interest rate hike from the US Federal Reserve and recovering some ground over the weekend before reports emerged about regulatory action against Paxos for selling unregistered securities in form of BUSD, cryptocurrency markets have not been able to hold onto their gains with altcoins reacting much worse than bitcoin itself which is currently sitting at its three-week low of $21 400.