The suspension is based on the internal monitoring process of Coinbase, which found that the Stablecoin (BUSD) doesn’t meet its listing standards, CoinDesk quoted a cryptocurrency exchange spokesperson as saying. As a result of the suspension, Coinbase.com, Coinbase Pro, Coinbase Exchange and Coinbase Prime will be affected. Coinbase informed that users will still be able to access their BUSD funds and withdraw them anytime.
Binance, the world’s largest cryptocurrency exchange by trading volumes, launched its native stablecoin back in 2019. BUSD was built in association with US-based Paxos, which serves as its issuer as well as custodian of fiat reserves. Since then, the $16 billion stablecoin has been up for direct purchase and redemption on the Paxos platform, as well as for trading on Binance.com and other exchanges.
The development comes shortly after the New York Department of Financial Services (NYDFS) ordered Paxos Trust Co., which has its own stablecoin, Pax dollar (USDP), to stop minting any new BUSDs. To assure holders, Binance said that Paxos will continue to manage redemptions of BUSDs.
The SEC also plans to sue Paxos for violating investor protection rules. The issuer was already told of the planned enforcement action as the regulator claims that Binance USD is an unregistered security.
Pasox has refuted the SEC’s claims and noted that it” categorically disagrees with the SEC staff because BUSD is not a security under the federal securities laws.” The company added that the SEC Wells notice pertains only to BUSD and there are no other allegations against its business.
Although the issuer said it will contest the regulatory claims, the legal battle with the SEC could take years if the company fights the order in court. As such, those who keep BUSD listed on their platforms may be at risk of being sued and fined if the SEC wins its case and the court deems the stablecoin unregistered securities. The development comes shortly after the New York Department of Financial Services (NYDFS) ordered Paxos Trust Co., which has its own stablecoin, Pax dollar (USDP), to stop minting any new BUSDs.
Crypto assets deposited in liquid staking protocols amounted to $14.1 billion on Monday, making it the second-largest crypto market sector, CoinDesk reported. Decentralised-finance (DeFi) lending and borrowing protocols held a total value of $13.7 billion, the third largest, whereas decentralised exchanges held assets worth $19.4 billion.
Ethereum’s upcoming Shanghai software upgrade, which will enable stakers to withdraw their staked Ethereum (ETH) and accumulated rewards for the first time, has galvanised investor interest in liquid staking.