OKX Founder Upholds Support for Regulated Stable Currencies and Skeptical of SEC’s Ability to Win Case

02/13/2023 15:47 • AI Insights • 1043 views

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.

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

Analysis based on this information:

The message conveys the views of Xu Mingxing, the founder of OKX – a world-renowned cryptocurrency exchange – regarding stable currencies and their regulation. He emphasizes that OKX highly supports regulated stable currencies, like USDC (a stablecoin backed by the US dollar). In contrast, the exchange has no plans to launch its stable currencies. This position is consistent with OKX’s strategy to focus on its core business and provide users with high-quality services in a compliant manner.

One interesting point that Xu Mingxing makes is his skepticism about the Securities and Exchange Commission’s (SEC) ability to win the case against stablecoins. He argues that BUSD, a stablecoin issued by Paxos, does not have any profit expectation, and therefore, should not be considered securities. This perspective aligns with recent developments in the US regulatory landscape. Previously, the SEC has launched legal action against unregistered initial coin offerings (ICO) that it deemed as securities. However, the trend seems to be shifting towards more manageable regulatory frameworks for crypto assets. This shift has become more prominent since Gary Gensler, a cryptocurrency advocate, was appointed as the SEC Chairman.

In contrast to the SEC, Xu Mingxing is less optimistic about the New York Department of Financial Services’ (NYDFS) approach to stablecoin regulation. He highlights that, while BUSD is not a security, the NYDFS could request to stop BUSD issuance or suspend Paxos’s operating license. This action could be detrimental to the industry’s growth and could trigger more stringent oversight of stablecoins in general.

In conclusion, Xu Mingxing’s views about stablecoin regulations and OKX’s focus on quality services in compliance with regulatory requirements come together to present a nuanced view of stablecoins’ ongoing evolution. The exchange’s support for USDC and emphasis on regulatory concerns is expected to enhance trust for users, especially those wary of the sector’s shady past. Meanwhile, Xu Mingxing’s skepticism of the SEC’s ability and cautiousness on the NYDFS signal that there is significant growth potential but substantial regulatory risks facing stablecoins.

Overall, the message suggests that stakeholders should remain mindful of ongoing regulatory actions and be vigilant about industry developments as stablecoins become an increasingly critical part of the digital asset ecosystem.

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