BUSD issuer Paxos was ordered to stop minting the stablecoin and faces a potential suit from the U.S. SEC, according to reports. Binance CEO CZ responds!
CZ Warns of ‘Profound Impacts’ on Crypto
Paxos Global has been ordered by New York regulators to stop minting new BUSD stablecoins and faces a potential lawsuit from the U.S. Securities and Exchange Commission, according to a pair of news reports.
Paxos said in a press release “it will end its relationship with Binance for the branded stablecoin BUSD” and cease minting BUSD Feb. 21, in coordination with New York Department of Financial Services (NYDFS).
In a Twitter thread, Binance CEO Changpeng Zhao (CZ) said the cessation of minting would cause BUSD’s market cap to decrease over time.
Assuring users that BUSD funds were “SAFU,” CZ said the centralized exchange would continue to support BUSD for the foreseeable future but that as users migrate away from BUSD, Binance would adjust its products accordingly, i.e. moving away from using BUSD as the main trading pair.
2/ We were informed by Paxos they have been directed to…