• Coinbase will suspend Binance USD (BUSD) trading starting March 13 at noon Eastern Time.
• The suspension will include Coinbase.com, Coinbase Pro, Coinbase Exchange, and Coinbase Prime platforms.
• The SEC requested Paxos to halt further BUSD production on Feb. 13 citing violation of securities and investor protection laws.
Coinbase Suspending BUSD Trading
Crypto exchange Coinbase announced that they will suspend trading for Binance USD (BUSD) on March 13, 2023 at 12pm ET via their official Twitter account. This suspension includes Coinbase.com, Coinbase Pro, Coinbase Exchange, and Coinbase Prime platforms; however users can still access and withdraw their BUSD holdings after Mar. 13th.
SEC Requested Paxos to Halt Further BUSD Production
The Securities and Exchange Commission (SEC) requested Paxos to halt further BUSD production on Feb. 13 citing violation of securities and investor protection laws. Between Feb. 13th and Feb 17th, Binance lost 16% of its BUSD holdings prompting the need for a burn of idle funds in the last seven days amounting to $2 billion on the BNB Chain.
Impact of Suspension
The suspension may have an impact on cryptocurrency traders as it is one of the main stablecoin options available in the market right now which can be used as a hedge against price volatility in other cryptoassets such as Bitcoin or Ethereum when investing into crypto markets with margin products or leveraged tokens like wBTC or renBTC respectively .
Outlook Ahead
It remains unclear how long this suspension will last but there is no doubt that it has caused uncertainty among traders in the short term who are now left with limited stablecoin options for trading purposes or hedging against price volatility risk when dealing with margin products or leveraged tokens .
Conclusion
Cryptocurrency exchange Coinbase made an announcement that it would suspend trading for Binance USD (BUSD) on March 13th due to security issues raised by The Securities and Exchange Commission (SEC). This may cause some disruption amongst traders who use these assets as a hedge against price volatility when dealing with margin products or leveraged tokens until more clarity is provided by regulators around these regulations in the future .