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• The SEC’s ruling on BUSD being a security has been called into question by Truflation CEO Stefan Rust.
• Paxos, the issuer of the stablecoin, was ordered to stop minting new BUSD by the New York Department of Financial Services (NYDFS).
• Binance has said it will continue supporting the Binance USD (BUSD) stablecoin, but could look at alternatives as a new main trading pair.
SEC Ruling on BUSD Called Into Question
The SEC’s ruling on Bitcoin-based US Dollar (BUSD) being a security has been called into question by Truflation CEO Stefan Rust. Rust believes there’s a political angle to the action, pointing to Binance’s freezing out of USDC last year as a likely trigger.
Paxos Ordered To Cease Issuing New Tokens
The New York Department of Financial Services order for BUSD issuer Paxos to cease issuing new tokens. Paxos announced it would comply with the NYDFS order and also said it would be terminating its relationship with Binance, but maintained that BUSD is not a security. Notably, Paxos announced that it would litigate to the extent it can against the US Securities and Exchange Commission (SEC) lawsuit that labels BUSD an „unregistered security.“
Binance To Continue Supporting Stablecoin
Binance, the world’s leading cryptocurrency exchange, stated that it will continue supporting and providing no-fee trading on the stablecoin’s trading pairs despite recent events. The exchange also rolled out an auto-conversion feature for USD Coin (USDC) and Tether (USDT).
Truflation CEO Criticizes SEC Actions
Truflation CEO Stefan Rust says that this does not make sense legally and appears to be influenced politically due to BlackRock’s influence in curbing trading volumes of USDC in comparison to USDT and BUSD.