Coinbase previously decided to stop trading BUSD because the stablecoin did not meet the exchange’s listing standards.
Coinbase CEO Clarifies BUSD Trading Stop
Appeared interview on Bloomberg TV On March 1, Coinbase CEO Brian Armstrong clarified that the suspension of Binance USD (BUSD) trading was due to the company’s doubts about the stablecoin’s liquidity. Armstrong says:
“We do it because Paxos, the issuer of BUSD, has been ordered to stop new mints, so we are concerned about liquidity issues for our clients.”
“What I believe should happen in the United States is that we need a clear rulebook so that this industry can be built here.”
Coinbase CEO Brian Armstrong sits with Bloomberg’s @sonalibasak to discuss US cryptocurrency legislation and revenue losses https://t.co/u3AMwlJ99A pic.twitter.com/gQYzqXiXQY
— Bloomberg Crypto (@crypto) March 1, 2023
As Cointelegraph reported, Binance-branded stablecoin and issuer Paxos recently got into trouble Legal scandal with US officials. Accordingly, the New York Department of Financial Services (NYDFS) ordered Paxos to stop issuing BUSD after The US Securities and Exchange Commission (SEC) alleges that this is an unregistered securities. But despite completely rejecting the SEC’s position, Paxos has terminated its partnership with Binance and is in a constructive dialogue with the regulator.
Faced with the above confusing situation, on the evening of February 27, Coinbase Announces Delisting BUSD on the Platform. At that time, the exchange cited the reason that BUSD did not meet the listing standards, based on an internal review and monitoring process.
The US needs to take legal action more quickly
Also at the interview with reporters BloombergCEO Armstrong continued to reaffirm that the exchange’s staking product is not a security. He also said his company is ready to defend it in court if necessary.
CEOs are generally still supportive of stablecoins, but note that not all. Especially after what happened to BUSD.
Notably, the Coinbase CEO also emphasized that the US seems to have been left behind. A lot of traditional financial services companies are integrating cryptocurrencies. From JPMorgan, Visa, Mastercard, Franklin Templeton, they all have projects and research teams that integrate crypto into their services.
Mr. Brian added:
“My number one priority this year is the policy environment. The rest of the world has mostly actually accepted cryptocurrencies. We can take major financial centers such as Singapore, Hong Kong, London and the EU as an example. However, we still need a clear framework (from the US) so that the industry can continue to grow.”