• BUSD’s market cap has dropped from its all-time high of $23.49 billion to a new low of $9.66 billion amidst regulatory and delisting concerns.
• Coinbase plans to delist BUSD on March 13, 2023 due to liquidity concerns.
• The US Securities and Exchange Commission (SEC) is set to sue Paxos for trading BUSD as an unregistered security, while three US senators are pressing Binance for accountability.
BUSD Market Cap Drops Dramatically
BUSD’s market cap has dropped below $10 billion from its all-time high set at $23.49 billion on Nov. 15, 2022 – a new all-time low in the past two years as the coin faces a regulatory crackdown from the US authorities and possible delisting from Coinbase. The value was at $9.66 billion on March 3, 2023, a low that has not been recorded since June 29, 2021.
Coinbase Plans Delisting Of BUSD
Coinbase tweeted on Feb 27, 2023 that it plans to delist Binance USD on March 13, 2023 at 12pm ET due to liquidity concerns arising after Paxos was ordered by New York Department of Financial Services (NYDFS) to cease minting BUSD due to dissonant issues in the Paxos-Binance relationship. The suspension will affect simple and advanced trading on Coinbase Pro, Coinbase.com, Coinbase Prime, and Coinbase Exchange but investors can still access their funds and withdraw anytime.
US SEC & Senators Take Action Against BUSD
The Securities and Exchange Commission(SEC) is set to sue Paxos for trading BUSD as an unregistered security and issued them with a Wells notice informing them of possible legal enforcement actions against them . Meanwhile three US senators are pressing Binance for accountability over the issue leading to even further drops in the coin’s market cap trajectory downwards since it hit its all-time high on Nov 15th 2022 just days after FTX fell apart .
Impact Of Delisting On Other Assets
The news of delisting has had an effect on other assets too with Brian Armstrong indicating that this move was made due to liquidity concerns when he appearedon Bloomberg TV on March 1st ,2023 .The exchange token price ,Binance Coin (BNB), also suffered consequent drops following the announcement .
In conclusion ,delisting of stablecoin such as USDT is becoming increasingly common among major exchanges such as Coinbase who cite liquidity or compliance issues amidst rising regulation by governments around the world .This could potentially have long lasting implications for both users of these coins as wellas exchanges which list them .