Coinbase is set to suspend trading of Binance USD (BUSD) on March 13 at noon EST, as per its most recent review of the stablecoin. This follows Paxos' decision to stop issuing BUSD after receiving an order from a New York regulator.
A Coinbase spokesperson stated that the suspension of BUSD trading was based on their own internal monitoring and review processes, finding that the stablecoin no longer met listing standards. Although BUSD withdrawals will still be possible, trading on Coinbase.com, Coinbase Pro, Coinbase Exchange, and Coinbase Prime will be suspended. Paxos received a Wells notice from the U.S. Securities and Exchange Commission (SEC) earlier this month, alleging that BUSD was an unregistered security. Despite Paxos' disagreement with this categorization, the stablecoin issuer has cut ties with Binance and is engaging in constructive discussions with the regulator.