The move comes after the US Securities and Exchange Commission announced earlier this month that it was looking into the stablecoin as a possible unregistered security. Coinbase determined that BUSD no longer met their listing standards after reviewing it. The exchange manages token listings via its Digital Asset Listings Group, a committee reviewing assets which excludes its CEO Brian Armstrong and board members. It is worth noting that users shall still be able to access and withdraw their BUSD following the suspension, according to a tweet from Coinbase. As of this writing, BUSD is currently the third biggest stablecoin, with a market capitalization of US$10.6 billion. Coinbase previously stated that stablecoins backed by US dollars are not securities. The NYDFS ordered Paxos, which owns and operates BUSD, to halt the issuance of the Ethereum-based stablecoin on February 21st, 2023. Paxos has stated that the stablecoin will be supported until at least February 2024. Paxos also received a Wells notice from the US SEC earlier this month, which threatened potential enforcement action because the stablecoin was deemed an unregistered financial security. Paxos issued a statement claiming that BUSD is not a security and that it is in constructive discussions with the SEC. Binance stated earlier this month that it only licenses its brand to Paxos for use with BUSD.
