Coinbase to suspend trading of Binance USD (BUSD)

ambcrypto.com:

Coinbase, a leading U.S. crypto exchange, announced that it would suspend the trading of Binance USD (BUSD). The decision comes right when the U.S. Securities and Exchanges Commission (SEC) labeled the stablecoin as a security. Notably, Coinbase is the first major U.S.-based crypto exchange to put a distance between the stablecoin after regulatory action was brought to light.

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The crypto exchange stated that it would pause BUSD trading on March 13, 2023.  This suspension would apply to Coinbase.com, Coinbase Pro, Coinbase Exchange, and Coinbase Prime. The American crypto exchange further stated that users would be able to withdraw their coins at any time. The exchange said,

“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.”

Notably, the news has not had a significant impact on the stablecoin at press time. According to CoinMarketCap, BUSD still held the third position among the top stablecoins in the market, with the coin maintaining its dollar peg.

Coinbase’s move a reaction to SEC action?

On February 13, 2023, Paxos Trust Company- the company issuing BUSD – confirmed that the firm had received a Wells notice from the SEC at the beginning of the month. The notice stated that staff at the commission was “considering recommending an action” claiming that the stablecoin was a security. And, as a result, the firm was required to register BUSD under federal securities laws.

However, the BUSD issuer disagreed with SEC’s argument, claiming that the stablecoin was not a security. Paxos even stated