Connect with us

Business

Binance clarifies BFUSD isn’t a stablecoin as X gets Terra flashbacks

Published

on

Binance has issued a clarification regarding its newly launched Binance USD (BUSD)-pegged token, BFUSD, responding to growing concerns from users who questioned its stability and yield offerings. The exchange explained that BFUSD is not a stablecoin in the traditional sense, but rather a token pegged to the value of the U.S. dollar. This clarification comes after some confusion arose among Binance users, who initially assumed BFUSD would function similarly to stablecoins like BUSD or USDT, which are typically backed by fiat reserves.

The confusion intensified when some users noted discrepancies in the token’s yield structure, with some questioning whether BFUSD could deliver the same returns as other yield-bearing assets in the Binance ecosystem. In response, Binance reassured users that BFUSD is primarily a token for use within its platform, designed for specific features such as staking and earning rewards, but not meant to replicate the characteristics of traditional stablecoins. The exchange emphasized that BFUSD is not subject to the same regulatory frameworks or guarantees as other stablecoins, and that its yield offerings would depend on the particular services and risks associated with the token.

Binance also addressed concerns about the potential volatility of BFUSD, confirming that it remains a relatively low-risk token within its platform. However, users were reminded that, like other digital assets, BFUSD is still subject to market fluctuations and can experience price movements in response to broader market conditions. The company reassured users that its decision to clarify BFUSD’s role was to ensure transparency and better understanding among the platform’s extensive user base.

The clarification comes as Binance continues to diversify its offerings in an increasingly competitive crypto exchange landscape. While the firm has faced regulatory scrutiny in several countries, it has also sought to expand its range of products and services, including yield-bearing tokens and other DeFi-related features. As the crypto market evolves, Binance’s effort to define the role of BFUSD within its ecosystem highlights the ongoing challenges exchanges face in balancing innovation with user expectations and regulatory requirements.

Business

US lawmakers advance anti-CBDC bill

Published

on

U.S. lawmakers have voted to advance a bill aimed at blocking the Federal Reserve from issuing a central bank digital currency (CBDC), marking a major step in the political pushback against the development of a digital dollar.

The bill, which passed through the House Financial Services Committee, would prohibit the Fed from directly offering accounts or issuing a CBDC to individuals, citing concerns over surveillance, privacy, and government overreach.

Supporters of the legislation argue that a digital dollar could pose significant risks to civil liberties, enabling real-time tracking of consumer transactions and expanding federal control over personal finances. They view the bill as a safeguard against what they describe as a “surveillance-style” monetary system.

Opponents of the bill, however, argue that restricting CBDC development could hinder U.S. innovation and global competitiveness in the evolving digital financial landscape.

The legislation now moves closer to a potential floor vote in Congress. Its progress underscores growing ideological divisions over the future of money in the United States, with CBDCs emerging as a new front in the broader debate over digital governance, financial freedom, and the role of government in the digital age.

Continue Reading

Business

Gemini to open Miami office after judge stays SEC case

Published

on

Crypto exchange Gemini has opened a new office in Miami, reinforcing its commitment to expanding operations despite pausing its plans for an initial public offering (IPO) amid a continuing legal battle with the U.S. Securities and Exchange Commission (SEC).

The Miami office signals the company’s long-term vision for growth in key U.S. markets, even as regulatory uncertainty clouds the broader crypto landscape. The expansion comes at a time when Gemini is facing heightened scrutiny from the SEC over its Earn program, which the regulator alleges involved unregistered securities.

While the IPO remains on hold, Gemini continues to strengthen its infrastructure and team, focusing on user growth, compliance, and regional outreach. The Miami hub is expected to play a strategic role in those efforts, leveraging the city’s growing status as a U.S. crypto hotspot.

Co-founders Cameron and Tyler Winklevoss remain vocal about the need for clear regulatory frameworks and have emphasized that Gemini will continue to fight for fair treatment while building responsibly in the U.S. and abroad.

Continue Reading

Business

Coinbase Institutional files for XRP futures trading with CFTC

Published

on

Coinbase Institutional has officially filed with the U.S. Commodity Futures Trading Commission (CFTC) to offer XRP futures trading, marking a significant move toward expanding institutional access to Ripple’s native token.

The filing, submitted through Coinbase Derivatives, signals the exchange’s intent to list XRP futures contracts in a regulated environment. If approved, it would allow institutional investors to gain exposure to XRP through derivative products, a key step in broadening the token’s presence in traditional financial markets.

This development comes amid a gradually improving regulatory climate for XRP, following a partial legal victory for Ripple in its ongoing case with the U.S. Securities and Exchange Commission (SEC). The outcome gave XRP a degree of legal clarity, opening the door for exchanges and financial institutions to re-engage with the asset.

Coinbase’s push to expand its derivatives offerings also aligns with its strategy to build a more robust institutional platform. Approval from the CFTC would position the exchange to capitalize on growing demand for regulated crypto investment vehicles.

Continue Reading

Trending

Copyright © 2025 cryptonews.lk