Coinbase to suspend Binance USD trading, The exchange announced on Twitter on February 27, the stablecoin on March 13. The message mentioned its "listing criteria" as being behind the decision. BUSD is the third largest stablecoin by market capitalization.
According to a Twitter thread, the decision will apply to Coinbase.com (Simple and Premium), Coinbase Pro, Coinbase Exchange, and Coinbase Prime. The exchange added, “Your BUSD funds will still be available to you and you will continue to be able to withdraw funds at any time.”
According to Coinbase’s website, its Digital Asset Listing Group votes on assets listed on the exchange “under a rigorous vetting/vetting process that evaluates assets against legal, compliance, and technical security standards.” In addition, there are additional business Assessment and ongoing monitoring to ensure assets continue to meet standards. The SEC reportedly issued a Wells Notice a Notice of Planned Enforcement Action to BUSD’s issuer blockchain infrastructure platform, Paxos Trust, on or about February 12. The New York State Department of Financial Services ordered Paxos to stop issuing BUSD on Feb. 13, causing the market cap to drop by $2 billion in a matter of days.
Coinbase issued a Twitter thread the next day stating: “We don’t know what aspects of BUSD the SEC might be interested in. What we do know is this: Stablecoins are not securities.” Paxos reportedly held “constructive” talks with the SEC on Feb. 21.
