US cryptocurrency exchange Coinbase has suspended Binance USD (BUSD) as it doesn't meet its listing standards.
Coinbase, which is the second biggest crypto exchange by trading volume, has also delisted the Paxos-backed stablecoin from the platform.
BUSD has come under a lot of regulatory scrutiny recently, but Coinbase has said in a tweet its decision has nothing to do with the US Securities and Exchange Commission (SEC).
It wrote: “We don’t know what aspects of BUSD might be of interest to the SEC. What we do know: stablecoins are not securities.”
The SEC issued a notice of a planned enforcement action against Paxos Trust on February 12 and the New York State Department of Financial Services ordered Paxos to stop issuing BUSD on February 13, leading to a $2bn drop in market cap within days.
Coinbase tweeted: “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.”
The suspension affects Coinbase.com, Coinbase Pro, Coinbase Exchange and Coinbase Prime. Users will still be able to access their BUSD funds and withdraw them at any time.
Binance coin (BNB), the exchange token of Binance, dropped 1% after the news.
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