We do the research, you get the alpha!
#BUSD. A thread. 1/8
In summary, BUSD is issued and redeemed by Paxos. And funds are #SAFU!
— CZ 🔶 Binance (@cz_binance) February 13, 2023
$66,159.00
6.45%$3,015.08
3.41%$6.96
6.72%$584.68
2.71%$162.83
12.93%$0.999991
0.01%$0.519361
3.98%$3,013.46
3.44%$6.74
-3.12%$0.156195
4.83%$0.457425
6.19%$0.00002562
6.81%$34.76
6.49%$0.124913
-0.39%$66,094.00
6.23%$458.07
6.15%$8.12
16.47%$13.95
6.63%$0.690694
5.59%$82.43
4.57%$2.31
14.43%$12.39
2.93%$7.41
7.92%$5.98
0.70%$0.00001058
-7.25%$10.57
3.42%$27.33
6.31%$0.111405
5.02%$8.57
8.28%$0.998559
-0.07%$3,124.92
3.40%$2.38
17.23%$0.125393
3.84%$8.47
3.69%$0.996285
4.34%$5.83
7.89%$2.20
15.53%$0.107624
4.53%$3.02
3.38%$50.06
2.51%$2,963.52
3.45%$0.308867
15.81%$0.123192
8.47%$43.69
6.12%$397.78
14.14%$0.997477
5.99%$0.0362869
7.47%$2.51
3.81%$2,804.29
3.16%$134.42
0.72%$1.014
11.80%$1.002
-0.04%$0.809415
24.31%$24.02
11.14%$6.55
16.17%$2.17
11.23%$0.00021562
-0.70%$0.00002593
6.53%$3,341.46
3.57%$9.12
11.34%$1.84
16.60%$0.04513726
13.38%$0.54849
20.09%$1.17
12.61%$1.093
3.77%$0.180547
4.72%$1.63
2.06%$3,117.40
3.74%$9.91
0.49%$96.55
3.15%$5.84
17.19%$0.882356
6.70%$86.44
5.92%$0.02547389
19.51%$63.72
6.71%$0.853607
13.35%$0.959321
13.84%$0.0000012
4.31%$2.06
9.53%$0.02797162
4.90%$40.76
7.87%$15.49
6.66%$19.10
3.56%$0.121788
7.34%$0.729057
4.17%$5.05
5.52%$7.31
8.68%$8.11
1.13%$0.02060411
5.55%$0.577104
6.19%$0.441247
7.18%$192.72
12.72%$0.02021053
12.92%$12.21
3.54%$0.00004896
5.72%$9.77
2.11%$0.803322
6.39%$2.12
8.25%$0.917522
4.46%$0.800787
9.01%$0.01265188
18.47%$0.801695
4.78%$2.70
8.47%$2.62
8.80%$0.212684
7.87%$0.876528
-12.06%$1.17
0.65%$38.88
5.45%$4.91
7.35%$0.432305
6.75%$3,020.15
4.03%$1.24
8.21%$3,035.65
3.40%$13.20
9.03%$191.80
12.26%$0.996002
-0.16%$278.61
1.62%$1.28
4.15%$0.660103
4.90%$0.21525
6.25%$1.059
7.71%$0.106755
17.36%$0.01560791
4.71%$2.62
4.32%$4.44
7.46%$0.444
8.71%$20.23
14.12%$0.998605
-0.03%$16.34
11.55%$0.0001105
6.62%$0.174633
6.44%$0.962123
13.17%$1.97
0.72%$35.11
7.57%$3,003.78
3.84%$0.374685
11.17%$0.089346
8.94%$0.00000028
7.25%$0.725118
6.88%$2,390.23
1.22%$0.878211
11.95%$3,182.10
3.44%$4.67
21.03%$3,221.97
3.39%$2.06
9.35%$85.27
6.54%$0.547514
7.12%$1.52
2.10%$0.03619688
0.72%$0.286644
9.34%$2.41
7.63%$0.42389
4.80%$0.090422
6.73%$0.999384
-0.01%$1.085
13.10%$0.500908
-0.52%$0.051184
13.37%$0.00000049
2.14%$0.02652167
7.30%$4.79
-1.60%$3,257.12
3.16%$1.79
19.41%$2.75
6.64%$0.04489197
4.21%$0.280017
3.46%$0.04557971
8.97%$3.94
12.91%$14.48
7.62%$0.999006
11.53%$1.083
2.47%$0.221526
8.29%$0.383018
7.29%$0.302046
5.31%$0.816276
10.89%$2,372.90
1.31%$0.319095
5.80%$0.513123
15.00%$0.0236659
7.51%$9.29
20.41%$20.84
7.24%$0.400653
11.46%$1.65
4.85%$3.57
6.30%$1.73
13.14%$0.02959991
7.82%$0.594382
5.74%$0.00229117
5.94%$4.87
16.79%$0.00117927
3.78%$0.00702471
3.68%$3.48
7.93%$0.00715406
5.16%$1,327.91
6.60%$56.00
5.67%$0.526557
3.96%$3.63
4.98%$0.073658
7.96%$3,093.53
3.46%$0.818848
0.68%$0.999275
0.04%$3.83
-2.07%$3.44
7.33%$0.46914
9.92%$0.04243909
32.94%$0.03683812
7.14%$0.238085
6.39%$0.874671
12.80%$0.00701447
20.04%$23.40
3.84%$0.701766
4.53%$29.25
5.62%$4.29
6.11%$0.0375813
5.57%$0.02809756
3.56%$58.84
7.65%$5.08
5.26%$20.47
12.58%$60.52
3.26%$0.257478
6.02%$31.12
2.11%$0.0323419
2.84%$3.32
5.79%$0.726791
6.21%$0.834872
14.26%$0.891025
6.11%$7.64
3.56%$0.00342057
5.68%$0.00386591
9.39%$115.76
1.15%$2.08
0.60%$31.24
11.49%$0.00092434
-18.49%$3.66
1.30%$0.330705
8.46%$0.374141
9.38%$0.00000073
34.48%$0.316036
8.33%$0.439977
19.76%$3.85
1.99%$2.45
11.99%$1.94
5.89%$0.00004001
33.64%$0.338291
28.08%$0.388988
48.05%$0.834697
-2.29%$29.31
6.83%$0.052405
38.62%$39.80
6.56%The SEC is reportedly taking aim at the owner and issuer of the world’s third-largest stablecoin, Binance USD.
The U.S. Securities and Exchange Commission plans to sue Paxos Trust for violating investor protection laws, the company has confirmed to Decrypt.
Paxos said that it was halting the minting of BUSD and would “end its relationship with Binance” for the stablecoin in a press release. It also made assurances that existing BUSD tokens are fully backed and will be redeemable for at least a year.
#BUSD. A thread. 1/8
In summary, BUSD is issued and redeemed by Paxos. And funds are #SAFU!
— CZ 🔶 Binance (@cz_binance) February 13, 2023
Binance founder and CEO CZ tweeted that he was also informed by Paxos that the New York Department of Financial Services (NYDFS)—an agency Paxos is registered with and regulated by—has directed the company to cease issuing BUSD.
Paxos Trust has owned and operated the BUSD stablecoin business since 2019, when it entered into a licensing agreement with Binance, the world’s largest crypto exchange, to use its name and brand.
According to CoinGecko, BUSD has a market cap of over $16 billion—due in large part to its prominence on Binance’s exchange. However, as it is a stablecoin, its market cap and trading volumes do not affect the value of the product, at least in theory.
Interestingly, Paxos is only being directed by NYDFS to shut down its BUSD stablecoin, which customers can redeem for cash or convert to Pax Dollar (USDP), “a regulated US dollar-backed stablecoin also issued by Paxos Trust.”
Paxos made no mention of the SEC or any potential lawsuit in the statement released today but included six instances of the word “regulated.”
Binance has taken a hit from today’s news, with the crypto exchange facing a loss in licensing fees and the eventual decline of Binance USD’s marketing power. Binance’s non-stablecoin token, Binance Coin (BNB) dropped by 5% following the news, according to CoinGecko.
Over the past few months, the Securities and Exchange Commission has become increasingly aggressive in its approach toward the crypto industry.
Just last week, crypto exchange Kraken reached a $30 million settlement with the SEC over its staking service offered to U.S. customers. And SEC chair Gary Gensler has warned crypto companies that the “runway is getting awfully short” regarding compliance.
Gensler’s enthusiasm for the regulator’s crypto crackdown isn’t shared by all his colleagues, however. In a dissent to last week’s settlement with Kraken, SEC commissioner Hester Peirce wrote that the regulators “do not initiate a public process to develop a workable registration process that provides valuable information to investors, [we] just shut it down.”
Editor's note: this article has been updated to reflect direct confirmation from Paxos of the SEC action.