Advertisement
AD

Main navigation

Binance's Native Token, BNB, Price Impacted by Recent FUD on Stablecoin: Details

Advertisement
Mon, 13/02/2023 - 13:24
Binance's Native Token, BNB, Price Impacted by Recent FUD on Stablecoin: Details
Cover image via stock.adobe.com

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

Binance's native token, BNB, posted a significant drop on its daily chart after a New York regulator ordered Paxos Trust to stop creating more BUSD stablecoins. 

Advertisement

As seen on the TradingView chart, the BNB token plunged from a high of $315 to a low of $288 before slightly rebounding. At the time of publication, BNB was down 4.88% to $293.

As reported, the New York Department of Financial Services (NYDFS) ordered Paxos, which issues Binance's dollar-pegged cryptocurrency, to cease minting new BUSD tokens. Paxos will continue to manage redemptions of the product.

Related

The United States Securities and Exchange Commission (SEC) also sent Paxos a Wells notice, saying that BUSD is an unregistered security. Companies that get Wells notices are permitted to reply in writing and explain to the SEC why a lawsuit should not be filed. The SEC's Wells notices do not guarantee that it will pursue enforcement action.

Binance CEO responds

Changpeng "CZ" Zhao, the CEO of Binance, has responded to the recent BUSD news. He says, in summary, that BUSD is issued and redeemed by Paxos. "And funds are safu," he said, citing assurances from Paxos about the safety of funds.

On the alleged SEC v. Paxos lawsuit, CZ says he has no information about it, other than public news articles.

"If" BUSD is ruled as a security by the courts, it will have profound impacts on how the crypto industry will develop (or not develop) in the jurisdictions where it is ruled as such. Binance will continue to support BUSD for the foreseeable future, CZ added.

The Binance CEO hinted at further plans in the wake of the regulatory call: "We do foresee users migrating to other stablecoins over time. And we will make product adjustments accordingly. e.g., move away from using BUSD as the main pair for trading."

He continued, "Given the ongoing regulatory uncertainty in certain markets, we will be reviewing other projects in those jurisdictions to ensure our users are insulated from any undue harm."

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement
Advertisement

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD