Key TakeawaysPaxos will cease minting new USD tokens beginning February 21.
New instructions from NYDFS prompted the NYDFS to make this decision.
According to reports, the SEC also plans on suing Paxos.
Share this articlePaxos was ordered to cease the production of Binance USD tokens, the third-largest stablecoin in the crypto marketplace. This is in line with recent instructions from the New York State Department of Financial Services. BUSD, which has a market capitalization in excess of $15.9billion, is currently the third largest stablecoin on the crypto market. It follows Circle’s USDC and Tether’s USDT. Paxos stated that BUSD was fully collateralized with US dollars-denominated reserves and that holders would be able redeem the coin until February 2024. Other Paxos products such as Pax Dollar and Pax Gold (PAXG) are not affected by the NYDFS orders. The firm has not yet disclosed the reason why the NYDFS order ordered BUSD to be closed down. The Wall Street Journal reported yesterday however that the Securities and Exchange Commission planned to sue Paxos for violating investor protection laws. According to the report, BUSD is considered an unregistered security by the Securities and Exchange Commission. In a blog post last Wednesday, Nic Carter, a Bitcoin advocate, claimed that the U.S. government was trying to stealthily cut off crypto industry from banking sector and deprive them of significant off-ramps. In the early 2010s, the Obama administration used a similar scheme in order to cripple online poker. In this context, both the NYDFS (and the SEC) took action against Paxos in the early 2010s to cripple the online poker industry. Decentral Media, Inc. does not provide investment advice. We do not provide personalized investment advice or any other financial advice. This website’s information is subject to change at any time. The information on this website could become obsolete or incorrect. You may not be able to update any information that is outdated, incomplete or inaccurate. We also reserve the right to change any information that is incorrect, incomplete or outdated. If you need investment advice about an ICO, IEO or other investment, we strongly recommend that you consult a licensed financial advisor or other qualified financial professional. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.See full terms and conditions.Recommended News