Prominent cryptocurrency exchange Coinbase will suspend trading of Binance USD (BUSD) from March 13. announced.
However, BUSD funds will remain accessible and customers will be able to withdraw their funds at any time. A Coinbase spokesperson made the following statement on the subject:
“The reason for suspending BUSD transactions is due to our review and monitoring processes. During our review of BUSD, we decided that it did not meet our listing standards and that we should suspend its trading.”
BUSD is a dollar-pegged stablecoin issued by New York-based fintech firm Paxos Trust under the Binance brand. Investors use stablecoins as intermediaries to convert traditional fiat money into digital assets and facilitate cryptocurrency trading.
This suspension decision by Coinbase comes after the New York Department of Financial Services (NYSDFS) ordered Paxos to stop issuing BUSD.
U.S. Securities and Exchange Commission (SEC) At the same time, it sent a notice to Paxos that BUSD is a security. If the SEC takes action against Paxos and considers BUSD an unregistered security, this could have serious consequences for the stablecoin market. The SEC will use the Howey test to determine if BUSD is a security that could lead to stricter regulations.
Koinfinans.com As we have reported, Paxos will receive a payment of BUSD after notification. He objected to being a security. However, there are also a few potential scenarios that could happen, such as when Paxos recognizes BUSD as a security and settles with the SEC, requiring other stablecoin issuers to follow and sign up with Paxos.
You can follow the current price action here.