The BUSD stablecoin, which bears the Binance name, has lost another $1 billion in market worth and is now the fourth largest stablecoin.
According to CoinMarketCap statistics, the Binance USD (BUSD) stablecoin’s market value has decreased to roughly $4.3 billion in the last month from $5.5 billion.
With a market worth of around $83 billion and $28 billion, Tether’s USDT and USDC Coin (USDC) are the two biggest stablecoins.
The New York Department of Financial Services (DFS) ordered Paxos. This crypto business produces the stablecoin to cease minting BUSD tokens, contributing to the coin’s ongoing decrease in market value.
The SEC has issued a Wells Notice to Paxos and said it intends to file suit against the firm because of the BUSD issuance. According to the regulatory body, BUSD needs to be correctly registered.
Paxos said it would “end its relationship with Binance” and cease releasing new BUSD tokens as of February 21 in response to the regulatory crackdown. The tokens will remain redeemable and supported by the firm until at least February 2024.
As if that wasn’t bad enough for Binance’s stablecoin, the SEC has filed litigation against the company and its CEO, Changpeng Zhao, for allegedly running an unlicensed securities exchange.
The agency said that Binance’s sale of the Binance Coin (BNB) token and the BUSD stablecoin constituted an illegal selling of securities to the public.
Due to severe imbalances in two large stablecoin trading pools, USDT was de-pegged from the dollar last week. Shortly after the market value of the most popular stablecoin, USDT surpassed $83.2 billion, sellers piled in.
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