Following the intensification of the US regulatory pressure on the crypto sector, the crypto sector is growing uneasy. The markets have been on edge in recent days with aggressive regulatory rhetoric from US officials as authorities seek to rein in the cryptocurrency sector, once renowned for its decentralised nature.On Monday, the New York State Department of Financial Services told Paxos to stop minting new BUSD stablecoins. While stablecoins are usually backed by bonds or reserve assets, they were used to trade between different cryptocurrencies, as a trader does not need to convert the money back into fiat currencies.The SEC’s accusations against Paxos also put pressure on other stablecoins such as USD Coin (USDC) and tether (USDT). Following this development, Bitcoin is trading at $ 21,846 as of 15:15, while BUSD is relatively close to the level where it was fixed at $ 1 after the New York regulator’s orders.Paxos confirmed that the Securities and Exchange Commission has notified it that the Securities and Exchange Commission may recommend an action claiming that BUSD is a security and that Paxos should register the token offering under federal securities law. While the market waits to see exactly what the SEC charges against Paxos are and whether this will have implications for other stablecoins such as USD Coin, there is currently no official SEC action against Paxos. U.S. regulatory activity has centred on parts of the cryptocurrency industry, which has seen bankruptcies, failures of projects and companies, and the collapse of major exchange FTX after a year of turmoil in which nearly $1.4 trillion was wiped from the market, culminating in the collapse of major exchange FTX.Vijay Ayyar, vice president of crypto exchange Luno, said there may not be a major collapse in coin prices after last year’s massive sell-off. “The market seems to be taking the news quite well, and given that we may have seen most of the sales in the market last year, this sentiment remains cautiously optimistic,” Ayyar told CNBC on Tuesday. Investors are waiting to see what developments will take place next on the regulatory front for the medium and long-term course of the cryptocurrency sector.