No More BUSD Tokens From Paxos, Say NY Regulators
On Monday, the Wall Street Journal that New York regulators had asked Paxos to stop issuing the Binance BUSD stablecoin. These moves come ahead of the expected enforcement action that is supposed to be brought again crypto companies such as Paxos as more regulation swims into view.This fact that a Wells Notice was issued to the company is particularly important because more often than not when regulators issue such a notice, legal action is expected to follow. As of this time, Paxos will stop issuing BUSD which the SEC says could qualify as an unregistered security.
Crypto Market Takes A Hit
Hours after news broke of the Wells Notice being served to Paxos, the crypto market is already seeing some downside. Bitcoin and Ethereum, the two largest cryptocurrencies by market cap are already trading in the red. BUSD is also seeing a decline after dropping below its dollar peg following the news. The stablecoin which is the third largest in the space with a market cap of $16.1 billion fell to $0.991 briefly before recovering to be trading at $0.999 at the time of this writing.BUSD falls below peg following Paxos news | Source: