BUSD Market Cap Plummets $14B Amid Delisting Fears
• BUSD’s market cap has dropped below $10 billion from its all-time high set at $23.49 billion on Nov. 15, 2022.
• Coinbase plans to delist Binance USD on March 13, 2023, citing that it did not meet their listing standards based on recent reviews.
• Three US senators have pressed Binance for accountability due to possible trading of BUSD as an unregistered security.
BUSD Market Cap Drops Below $10 Billion
BUSD’s market cap has dropped below $10 billion from its all-time high set at $23.49 billion on Nov. 15, 2022. The value was at $9.66 billion on March 3, 2023, a low that has not been recorded since June 29, 2021 and is the lowest in two years amidst regulatory crackdown from the US authorities and potential delisting from Coinbase.
Coinbase Set To Delist BUSD
Coinbase announced plans to delist Binance USD on March 13, 2023 due to liquidity concerns arising after Paxos was ordered by the New York Department of Financial Services (NYDFS) to cease minting BUSD due to dissonant issues in the Paxos-Binance relationship and a potential lawsuit against Paxos by the Securities and Exchange Commission(SEC) for trading of BUSD as an unregistered security. 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.
SEC Issue Wells Notice To Paxos
The SEC issued Paxos a Wells notice informing them of possible legal enforcement actions regarding their trading of BUSD as an unregistered security which caused liquidity concerns for Coinbase leading them to suspend trading for it on March 13th 12pm ET; causing the price of Binance coin(BNB)to drop shortly after news was released while Brian Armstrong appeared on Bloomberg TV confirming these allegations against Paxos were true..
US Senators Press For Accountability
Three US senators have pressed Binane for accountability regarding this issue regarding the possibility of unregistered securities being traded with no proper regulation or supervision which further causes concern over investor safety within the cryptocurrency industry in general making it difficult for institutional investors looking into investing in digital assets like cryptocurrencies if there are no clear rules or regulations governing them .
In conclusion ,the market cap trajectory has been downwards since it hit its all-time highon Nov 15th , 2022 with recent developments such as potential lawsuit against Paxos , looming delisting by major cryptocurrency exchange platform ,and regulation allegation by three US senators taking place ;all contributing towards market cap dropping to an all time low leaving many investors worried about what this means for future investments into digital assets specifically cryptocurrencies .