Coinbase Halts Trading with Binance-Branded Stablecoin BUSD
Coinbase has announced that it will halt trading operations with Binance-branded stablecoin BUSD starting from March 13, 2023. The decision was made following the Securities and Exchange Commission’s Wells Notice against BUSD’s issuer, Paxos, accusing them of violating investor protection laws. The SEC claims that BUSD, along with many other tokens in the crypto ecosystem, is a security that needed to be registered with them. As a result, Paxos cut ties with Binance, and Coinbase became the first crypto exchange to suspend trading activity with the digital asset.
Users Can Withdraw BUSD Funds Despite Trading Suspension by Coinbase
Despite the suspension of trading activities with Binance-branded stablecoin BUSD by Coinbase starting from March 13, 2023, users can still withdraw their funds in BUSD. However, all commerce activities, including Advanced and Simple trading, Pro, Exchange, and Prime, will be suspended across multiple Coinbase products. BUSD’s market capitalization is expected to decrease over time, according to the CEO of Binance, Changpeng “CZ” Zhao, which could lead to a slow death of the digital asset. The fate of BUSD as a security could have significant impacts on how the crypto industry develops in the jurisdictions where it is ruled as such.