Binance has announced that it will be gradually winding down its support for BUSD, a stablecoin, by September 7th. This comes after the U.S. Securities and Exchange Commission (SEC) launched a probe into digital asset issuer Paxos, which had been minting BUSD tokens. The SEC labeled BUSD an unregistered security, and Binance and its CEO Changpeng Zhao were subsequently sued for violating U.S. laws.The exchange has encouraged eligible users to convert their BUSD assets to other stablecoins before February 2024. BUSD-related products on the crypto exchange, such as spot and margin trading, will be shuttered. BUSD withdrawals through the BNB Chain, Avalanche, Polygon, and Tron networks will cease in September, while deposits on these networks will continue until further notice.Rival crypto exchange Coinbase has also faced similar allegations of rulebreaking and unregistered securities sales from the SEC. Coinbase CEO Brian Armstrong was not named as the subject of investigations at the time. Both firms have rebutted these allegations, arguing against the SEC’s choice to regulate through enforcement actions rather than provide clear guidelines for the digital asset industry.The SEC currently has a trifecta of cases against Coinbase, Grayscale, and Ripple, all involving opposing views regarding interpreting securities laws for blockchain-based crypto assets. Judges in two of these cases have ruled against the SEC stand, either partially in Ripple’s case or completely in the Grayscale spot Bitcoin ETF saga. DeFi proponents have also hailed a ruling that software cannot be held liable for user losses or third-party damages in the Uniswap lawsuit. It is unclear if this win for DeFi sets any precedent in the Tornado Cash case.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 8 |
| People | Katherin Polk Failla, Changpeng Zhao, Paxos, SEC, Brian Armstrong |
| Companies | Binance, Ripple, Paxos, Grayscale, Securities and Exchange Commission, Tornado Cash, Coinbase, Department of Financial Services, Uniswap |
| Currencies | Ethereum, Bitcoin, Binance USD, TrueUSD, Tether |
| Securities | None |
