Coinbase has suspended Binance USD (BUSD) trading, effective from Monday. The move was in line with Coinbase’s earlier announcement about the suspension, citing “listing standards” as the reason. Users will still be able to access and withdraw their BUSD funds despite the trading suspension. Paxos, which issues BUSD tokens for Binance, was ordered by the New York Department of Financial Services (DFS) to stop minting BUSD tokens over concerns about unresolved issues related to the firm’s oversight of its Binance relationship. The SEC has also issued a Wells Notice to Paxos and reportedly plans to sue the company over BUSD issuance, arguing that it is an unregistered security. The BUSD market cap has slipped from $16.5bn to $8.4bn following the regulatory clampdown. However, the stablecoin has been able to maintain stability in its dollar peg. Meanwhile, Circle’s regulated stablecoin USDC distanced away from its dollar peg after it emerged that over $3bn of its reserves were in an account at the fallen lender Silicon Valley Bank. It has now recovered to almost the same level as its intended peg of $1.
