Initially pinned by the SEC, the stablecoin BUSD of the company Paxos, is the subject of an issuance ban by the Department of Financial Services of the State of New York (NYDFS). The BUSD thus counts in the list of products and companies affected by the current crackdown. Regulators have explained that BUSD is an unregistered security. If their decision is the subject of fierce disputes, many Paxos partners are counting and are already working to comply. Changpeng Zhao, CEO of Binance, recently said that his exchange may end the use of BUSD as the primary crypto for trading. Coinbase, meanwhile, will stop supporting the stablecoin.
Two more weeks and the BUSD listing on Coinbase will be over
New update in BUSD case. The largest US crypto exchange, Coinbase has said it is ready to remove the stablecoin from the list of products it offers. According to an update posted by the exchange team, BUSD should no longer be available on the platform from next March 13.
“We regularly monitor assets on our exchange to ensure they meet our listing standards. Based on our most recent reviews, Coinbase will suspend trading of BUSD March 13, 2023, around 12 p.m.Coinbase wrote in a statement.
Paxos, which issues the stablecoin, thought “categorically disagree” with the idea that the BUSD is a security. The company also promised to do everything to prevent the BUSD from sinking because of this decision.
Currently, talks are ongoing between regulators and Paxos. “We will be engaging with SEC staff on this issue. We are prepared to advocate vigorously if necessary”. This was reported by Paxos, a few days after the Wells Notice of the SEC.
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