Xu Mingxing: SEC may not win the case because BUSD certainly has no profit expectation

It is reported that Xu Mingxing, the founder of OKX, reiterated that OKX highly supports regulated stable currencies such as USDC and has no plans to launch OKX stable currencies. He believes that the SEC may not win the case because BUSD certainly has no profit expectation and should not be securities; However, NYDFS can request to stop BUSD or stop the license of Paxos.

Interpretation of this information:

The message implies that Xu Mingxing, the founder of OKX, is supportive of regulated stable currencies such as USDC and has no intention of launching OKX stable currencies. He expressed his belief that the SEC may not succeed in the case concerning BUSD because it has no profit expectation and should not be deemed securities. However, he added that NYDFS can still request to halt BUSD or revoke the license of its issuer, Paxos.

This statement reveals several key points about the current state of the cryptocurrency industry, particularly with regard to stablecoins. First and foremost, it highlights the importance of regulatory oversight in the development and adoption of digital assets. OKX’s founder is clearly in favor of working within established regulatory frameworks, and sees stablecoins like USDC as a promising avenue for compliance-minded investors and traders.

At the same time, there is some skepticism around the legal status of certain stablecoins, particularly those that do not promise any kind of profit or return on investment. The reference to BUSD suggests that some stakeholders may be concerned about potential legal challenges to the use of stablecoins as a means of exchange or store of value.

It is worth noting, however, that Xu Mingxing’s comments are not an outright condemnation of stablecoins or digital currencies as a whole. Rather, they suggest a nuanced view of the regulatory landscape, and acknowledge the need for clear guidelines and oversight in this rapidly-evolving space.

Overall, this message underscores the complex and ever-shifting nature of the cryptocurrency industry. While stablecoins have emerged as a promising solution for investors seeking a stable store of value, they face significant scrutiny and skepticism from regulators and traditional financial institutions. As the industry continues to mature and evolve, stakeholders will need to find ways to work within existing frameworks and navigate evolving legal and regulatory landscapes in order to ensure the long-term viability of digital currencies and other blockchain-based assets.