BUSD The wave of FUD around him has expanded and spread today.
Following rumors that the SEC will sue BUSD, the New York Department of Financial Services (NYDFS) has ordered BUSD issuer Paxos to stop issuing new BUSD.
After this order bitcoin While falling to $21480, a new statement came from Binance CEO Cz. Cz had this to say about NYDFS’ order:
“In a nutshell, BUSD is issued by Paxos and the funds are safe.
NYDFS has instructed Paxos to cease printing BUSD. Paxos is audited by NYDFS.
BUSD is a stablecoin wholly owned and managed by Paxos.
As a result, the market value of BUSD will only decrease over time.
Paxos will continue to serve.
Paxos also assured that the funds are safe and fully backed by its reserves in banks.
I have no information other than the news about the alleged SEC-Paxos case.
Litigation is between the USA, the SEC and Paxos.
I’m not an expert on US law but logically I don’t think it makes much sense.
If BUSD is recognized as a security by the courts, it will profoundly affect the development of the crypto industry in places that are considered as such.
Binance will continue to support BUSD for the foreseeable future. We anticipate users to migrate to other stablecoins over time. We will continue to adjust the product accordingly.
Try not to use BUSD as the main trading pair.
Given the ongoing legal uncertainty in certain markets, we will also review other projects to ensure our users are protected from unnecessary harm.”