BUSD Remains Strong Despite the NYDFS Attack on Paxos

  • Paxos Trust Company has received a stop order from US regulators to stop issuing BUSD.
  • Binance continues to support its Binance USD stablecoin despite the ongoing issues
  • The Binance exchange will continue to offer the stablecoin

Binance intends to continue supporting its Binance USD stablecoin despite a stop order issued by American regulators against its issuer, Paxos Trust Company.

BUSD, a stablecoin pegged to the dollar, will no longer be created by Paxos under an order from NYDFS. A notification from the US Securities and Exchange Commission (SEC) also informs Paxos that BUSD is not registered with the SEC.

However, Changpeng CZ Zhao, CEO of Binance, has assured users that their assets are secure despite the planned enforcement action by the NYDFS. CZ also mentioned on Twitter on February 13 that the NYDFS regulates Paxos and that Paxos owns and manages BUSD.

Paxos will continue to service BUSD and oversee redemptions, according to Zhao. It also provided assurances regarding its reserves, which several parties have audited.

Zhao added that Binance would continue to offer the stablecoin on its exchange, despite the fact that users may migrate to other stablecoin tokens as a result of the enforcement action.

In other news, Paxos’s native stablecoin USDP is not under SEC’s surveillance. Paxos Co., the issuer of the Binance USD (BUSD) stablecoin, is currently involved in a legal conflict with the Securities and Exchange Commission (SEC). The SEC accuses Paxos Co. of violating investor protection standards, causing the SEC to take such dramatic action.

Despite the allegations that the SEC has brought against the New York-based corporation, Paxos’ own stablecoin has not been included in the inquiry into the company’s operations, according to a recent tweet by CryptoNewsLand.

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José is a crypto enthusiast who trades crypto night and day. He loves to share his trading stories and experiences in all his published articles. José likes to hang out and travel to meet new friends. Enjoys sushi, vodka, and tequila.