Coinbase, one of the largest cryptocurrency exchanges in the US, announced that it would suspend trading for the Binance USD (BUSD) stablecoin on March 13 due to its “listing standards.” The decision will impact Coinbase.com, Coinbase Pro, Coinbase Exchange, and Coinbase Prime, but BUSD funds will remain accessible and can be withdrawn anytime.
Coinbase’s Listing Standards
Coinbase’s digital asset listings group strictly evaluates assets against legal, compliance, and technical security standards before voting on their inclusion on the exchange. There are also additional business assessments and ongoing monitoring to ensure listed assets continue to meet the established standards.
BUSD’s Compliance Issues
The United States Securities and Exchange Commission issued a Wells notice to Paxos Trust, the issuer of BUSD, on February 12. Paxos was also ordered to stop issuing BUSD by the New York State Department of Financial Services on February 13, causing its market capitalization to plummet by $2 billion in a few days.
Coinbase suspended BUSD trading after its internal monitoring and review processes determined that it no longer met the exchange’s listing standards. A Coinbase spokesperson reiterated that stablecoins are not securities.
