Venture Capitalists News Hubb
Advertisement Banner
  • Home
  • Venture Capital Market
  • Venture Capital Funding
  • Contact
No Result
View All Result
  • Home
  • Venture Capital Market
  • Venture Capital Funding
  • Contact
No Result
View All Result
Venture Capitalists News Hubb
No Result
View All Result
Home Venture Capital Funding

Coinbase Suspends Binance Stablecoin, Bowing to SEC

admin by admin
February 27, 2023
in Venture Capital Funding


Coinbase will suspend Binance USD trading starting next month after the SEC targeted the stablecoin, the crypto exchange said Monday.

Starting March 13, Coinbase will no longer offer Binance USD (BUSD) trades. Currently, the exchange does not offer any crypto trading pairs with BUSD; the only pair supported in some jurisdictions is BUSD/USD, according to Coinbase as of Feb. 17, 2023.

Still, the USD pair is blocked in certain locations, including New York and Germany.

CoinGecko reports Coinbase makes up 0.01% of total BUSD/USD volume. The most popular trading pair, BUSD and bitcoin (BTC), is only available on select exchanges, including the token’s native Binance.

The suspension comes after the SEC issued a Wells notice, which precedes an enforcement action, to Paxos alleging BUSD is a security. Paxos delisted the stablecoin in response.

Given the regulatory pressure BUSD is facing, suspending trading is a good opportunity for Coinbase to make a move the SEC will appreciate without much of a downside, considering BUSD’s low volume on the exchange.

“The important thing to highlight here is that Coinbase is reacting to the possibility and likelihood that BUSD will be ruled a security by the SEC,” Timothy Cradle, director of regulatory affairs at Blockchain Intelligence Group, said. “Other U.S. exchanges will follow suit in the coming weeks. This is a replay of the ripple’s delisting from two years ago.”

Ripple has been battling with the SEC over its token classification since 2020. A summary judgment is expected sometime this year, although virtually every exchange available to US traders has delisted the token.

Coinbase’s decision to move away from BUSD is proactive from a regulatory perspective, Cradle said.

“The issue for Coinbase is that they were selling BUSD on their exchange and if this is determined to be a security then Coinbase would be liable for selling an unregistered security once the SEC completes the case or settles with Paxos,” Cradle said. “Obviously Coinbase doesn’t want to be determined to be (what they may be anyway) an unregistered securities exchange.”

Coinbase launched USD coin (USDC) with Circle via the Centre Consortium in 2018, which has since grown to the second-largest stablecoin after tether (USDT).

USDC’s token classification has not been a subject of public SEC investigation since it was launched and Circle and Coinbase have denied being issued any Wells notice regarding the stablecoin.


Get the day’s top crypto news and insights delivered to your email every evening. Subscribe to Blockworks’ free newsletter now.

Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from Blockworks Research’s Daily Debrief.

Can’t wait? Get our news the fastest way possible. Join us on Telegram and follow us on Google News.





Source link

Tags: BUSDCoinbaseSEC
Previous Post

All you need to know about the 2nd NIIT Edtech Growth Summit

Next Post

Govt rolls out grievance committee for social media platforms

Next Post

Govt rolls out grievance committee for social media platforms

Recommended

Derivatives Protocol SynFutures Public Beta V2 Will Go Live on Polygon

5 months ago

Prime Core fell victim to mismanagement, felt ‘ripple effect’ from crypto winter

1 month ago

Top 7 Podcasts for Entrepreneurial Growth: Learn from the Best

5 months ago

The Capital Quest | Israel’s IronVest, Exceed, TaTiO get seed money; SecuriThings snags Series B

12 months ago

Ethereum Steps Towards Staking Withdrawals With Successful Testnet Upgrade

7 months ago

Binance Moved $400 Million to Trading Firm Managed by CZ: Report

8 months ago

© Venture CapitaLists News Hubb All rights reserved.

Use of these names, logos, and brands does not imply endorsement unless specified. By using this site, you agree to the Privacy Policy and Terms & Conditions.

Navigate Site

  • Home
  • Venture Capital Market
  • Venture Capital Funding
  • Contact

Newsletter Sign Up.

No Result
View All Result
  • Home
  • Venture Capital Market
  • Venture Capital Funding
  • Contact

© 2022 Venture Capitalists News Hubb All rights reserved.