The largest US-based crypto exchange by trading volume has released a major update involving the embattled stablecoin project Binance USD (BUSD).
According to a new announcement, Coinbase says they will delist BUSD in about two weeks’ time.
“We regularly monitor the assets on our exchange to ensure they meet our listing standards. Based on our most recent reviews, Coinbase will suspend trading for Binance USD (BUSD) on March 13, 2023, on or around 12pm ET.”
The future of Binance USD has been in question ever since the stablecoin’s issuer, Paxos, received a “Wells Notice” from the U.S. Securities and Exchange Commission (SEC) earlier this month. In the notice, the regulator stated that it is “considering recommending an action alleging that BUSD is a security and that Paxos should have registered the offering of BUSD under the federal securities laws.”
Paxos, however, said it “categorically disagrees” with the idea that BUSD is a security.
“We will engage with the SEC staff on this issue and are prepared to vigorously litigate if necessary.”
Last Monday, news broke that the New York Department of Financial Services (NYDFS) ordered the crypto company to freeze production of BUSD, which aims to maintain a peg to the US dollar.
Paxos subsequently announced that it would “end its relationship with Binance for the branded stablecoin BUSD.” The company also says all BUSD tokens have always and will always be backed by a 1:1 ratio of US dollar-denominated reserves.
Coinbase is set to delist BUSD on March 13, 2023.
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