BUSD

Paxos said on Monday it had received a notice from the U.S. Securities and Exchange Commission stating it is considering recommending an action alleging ...

Feb 13 (Reuters) - Paxos said on Monday it had received a notice from the U.S. BUSD is a fiat-backed stablecoin issued by Binance and Paxos. Securities and Exchange Commission stating it is considering recommending an action alleging that BUSD is a security and the blockchain firm should have registered the offering under the federal securities laws.

New York state regulators ordered Paxos to stop minting new Binance USD tokens, Binance CEO Changpeng Zhao said on Twitter. The Ethereum-built BUSD tokens ...

In 2014, New York became the first state to establish licensing for crypto-related companies. Paxos' BUSD product is built on the Ethereum blockchain and backed one-to-one by U.S. In other words, Binance can take a single Paxos-issued BUSD, create an analogous BUSD on another blockchain (like Binance's Paxos' BUSD product is related to, but separate from, Binance's self-issued Binance-pegged BUSD. Last week, the Securities and Exchange Commission The Wall Street Journal

The regulatory clampdown against the ailing crypto sector was turned up a notch in the US on Monday, adding a major stablecoin issuer and the world's ...

Crypto brokerage firm Paxos Trust will “end its relationship with Binance” for the BUSD stablecoin, it said in a statement.

And SEC chair Gary Gensler has [warned crypto companies](https://decrypt.co/121069/sec-gary-gensler-kraken) that the “runway is getting awfully short” regarding compliance. [$30 million settlement](https://decrypt.co/120984/sec-kraken-30-million-crypto-staking) with the SEC over its staking service offered to U.S. Binance’s non-stablecoin token, Binance Coin (BNB) dropped by 5% following the news, However, as it is a stablecoin, its market cap and trading volumes do not affect the value of the product, at least in theory. The U.S. [tweeted](https://twitter.com/cz_binance/status/1625067484368740353?s=20&t=ONfNSmsoG2O0-VX5yncH-A) that he was also informed by Paxos that the New York Department of Financial Services (NYDFS)—an agency Paxos is registered with and regulated by—has directed the company to cease issuing BUSD.

Though regulatory actions against stablecoin issuer Paxos come amid a crackdown of the space after a wild 2022, some say the impact on competitors may be ...

Paxos Trust Co.'s move to halt issuing more of the Binance-branded stablecoin BUSD amid pressure from US regulators is trickling down into the world of ...

New York's top financial regulator has ordered a crypto company to stop minting a major stablecoin, widening a clampdown on the embattled digital assets ...

The agreement will force the company to unwind a program offering investment returns to US users who committed their digital assets to the company. They’re usually pegged to real-world assets such as gold or the US dollar. Paxos also said it would “end its relationship” with Binance, the world’s largest crypto exchange. The ones already circulating “have and always will be” backed one-to-one with US dollar reserves, it added. But “in terms of confidence in the exchange as a whole,” Binance will likely retain users as long as customer deposits continue to be protected and users can still convert BUSD to other stablecoins, Lee added. [went bankrupt](https://www.cnn.com/2022/11/18/business/ftx-crypto-downfall-explained/index.html) in November, deepening the crisis in the industry. In its statement, Binance warned that the move to stop minting BUSD would hurt users and “only decrease” the token’s market capitalization over time. “Binance licenses its brand to Paxos for use with BUSD, which is entirely owned by Paxos and regulated” by New York authorities, the exchange said. In a statement to CNN, Binance stressed that, although its name appeared on the coin, “BUSD is a stablecoin wholly owned and managed by Paxos.” BUSD is one of the world’s most popular stablecoins, with a circulation of 15.8 billion tokens, according to Paxos, a blockchain company, announced Monday that it had been instructed by the New York State Department of Financial Services (NYDFS) to stop issuing BUSD, a Binance-branded stablecoin pegged to the US dollar. [clampdown](http://www.cnn.com/2023/02/10/tech/sec-crypto-staking-kraken/index.html) on the embattled digital assets sector.

Investors are fleeing the Paxos-issued stablecoin even though the firm gave assurances it is fully backed and will be wound down in an orderly manner, ...

CoinDesk is an independent operating subsidiary of [Digital Currency Group](https://dcg.co/), which invests in [cryptocurrencies](https://dcg.co/#digital-assets-portfolio) and blockchain [startups](https://dcg.co/portfolio/). [ Consensus 2023](https://consensus.coindesk.com/), CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. [strict set of editorial policies](/ethics/). [told Paxos](https://www.coindesk.com/policy/2023/02/13/sec-to-sue-crypto-trust-co-paxos-over-binance-stablecoin-wsj/) that it intends to sue the company for violating investor protection laws. Furthermore, the New York Department of Financial Services on Monday [ordered](https://www.coindesk.com/markets/2023/02/13/busd-depegs-from-rival-dollar-backed-stablecoin-tether-after-regulatory-action/) Paxos to stop minting new tokens. "It's not exactly that trust increased, but the perception that the range of available alternatives is narrowing," Solot said. "For example, Binance will probably have to backtrack on it's goal to establish BUSDC as the main base for trading in the exchange. In comparison, tether's presence has declined to 3%, the lowest in the pool, according to data sourced from analytics tool Chaineye and Curve, indicating an increased preference for USDT over BUSD and other centralized stablecoins in the wake of the regulatory action. Either that, or it's a case of dwindling alternatives. And while that seems logical, the evidence so far points to the opposite. DAI's share has risen slightly to 40%, data from Dune Analytics show. On Friday, a New York Judge

Citing "unresolved issues" tied to its relationship with Binance, the NYDFS ordered Paxos to halt the minting of BUSD while users have until February 2024 ...

[unanimous rejection](https://www.bankingdive.com/news/crypto-custodia-denied-fed-membership-master-account-caitlin-long-kansas-city/641529/) by the U.S. [Coinbase](https://coingeek.com/news/tag/coinbase/) ( [NASDAQ: COIN](https://www.nasdaq.com/market-activity/stocks/coin)) exchange. [Bloomberg](https://www.bloomberg.com/news/articles/2023-02-10/paypal-pauses-stablecoin-work-amid-regulatory-scrutiny-of-crypto) reported that payment processor [PayPal](https://coingeek.com/news/tag/paypal/) ( [NASDAQ: PYPL](https://www.nasdaq.com/market-activity/stocks/pypl)) had paused efforts to issue its own stablecoin. [Tether](https://coingeek.com/news/tag/tether/) stablecoin by either the SEC or New York. A PayPal spokesperson subsequently told [Fortune](https://fortune.com/crypto/2023/02/10/paypal-pauses-release-stablecoin-crypto-regulatory-scrutiny/) that the company was “exploring a stablecoin. [announced over a year ago](https://coingeek.com/the-coingeek-pulse-episode-72-paypal-explores-stablecoin-us-tightens-regulation-nft-boom-continues-video/) and in which Paxos was to play a major role, were likely much further along than the company is now willing to admit. [Binance US](https://coingeek.com/news/tag/binance-us/) continues to enjoy access to U.S. Last week, the SEC [imposed a $30 million penalty](https://coingeek.com/kraken-fined-30m-by-sec-agrees-to-halt-us-customer-staking-programs/) on the San Francisco-based [Kraken](https://coingeek.com/news/tag/kraken/) exchange, which agreed to permanently halt its ‘crypto asset staking services’ and ‘staking programs’ due to the SEC’s view that the products are unregistered securities. Securities and Exchange Commission](https://coingeek.com/news/tag/securities-and-exchange-commission/) (SEC) had [sent Paxos a Wells notice](https://coingeek.com/sec-plans-to-sue-paxos-over-binance-usd-stablecoin-stay-tuned/) based on the regulator’s opinion that BUSD is an unregistered security. That, in turn, followed Binance being publicly shamed as the [ top receiving party](https://coingeek.com/bitzlato-received-e1b-from-criminals-with-346m-flowing-to-binance-europol/) of the [crime-friendly Russia-based Bitzlato exchange](https://coingeek.com/us-authorities-dismantle-ransomware-friendly-bitzlato-exchange-arrest-co-founder/). [Ethereum](https://coingeek.com/news/tag/ethereum/) blockchain,” but it had not authorized so-called “Binance-Peg BUSD on any blockchain.” The ‘Binance-Peg’ version of BUSD is issued by Binance itself on its own Binance Chain, and the controversial exchange recently confirmed reports that it had [not always held sufficient assets](https://coingeek.com/binance-gets-initial-ok-for-voyager-deal-admits-busd-not-always-backed/) to support the redemption of Binance-Peg BUSD at a rate of 1:1 with the U.S. dollar bank transfers](https://coingeek.com/binance-unbanks-itself-crypto-customers-surprisingly-unimpressed/) this month after New York-based [ Signature Bank blocked Binance](https://coingeek.com/binance-wings-clipped-by-signature-bank-insider-trading/) from accessing the bank’s Signet digital payments platform.

Changpeng Zhao said Binance will continue working with other stablecoin issuers, and that he's skeptical about claims Circle raised alarm bells with ...

[ Consensus 2023](https://consensus.coindesk.com/), CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. CoinDesk is an independent operating subsidiary of [Digital Currency Group](https://dcg.co/), which invests in [cryptocurrencies](https://dcg.co/#digital-assets-portfolio) and blockchain [startups](https://dcg.co/portfolio/). [strict set of editorial policies](/ethics/). As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of [stock appreciation rights](https://www.investopedia.com/terms/s/sar.asp), which vest over a multi-year period. “BUSD is not issued by Binance,” Zhao said during a Twitter Spaces on Tuesday. I wouldn't take that article too seriously right now.”