BUSD turned volatile in the wake of regulatory action against its issuer Paxos Trust Co. The decline in BUSD/USDT pair on Binance suggests some traders are moving money into tether.

The U.S. Securities and Exchange Commission (SEC) intends to sue stablecoin issuer Paxos, and the New York Department of Financial Services ordered Paxos to stop creating more of its BUSD token.

Binance's dollar-pegged stablecoin BUSD turned volatile in the wake of regulatory action against its issuer Paxos Trust Co.

Paxos, the leading regulated blockchain and tokenization infrastructure platform, announced it will end its relationship with Binance for the branded stablecoin BUSD.

Paxos, the leading regulated blockchain and tokenization infrastructure platform, announced it will end its relationship with Binance for the branded stablecoin BUSD.

Paxos and Binance USD (BUSD) being in the sights of United States regulators sparked various reactions from the crypto community. 

Binance will continue to support Binance USD, although the exchange is ready to adjust and potentially move away from using the stablecoin as its main pair for trading.

U.S. Securities and Exchange Commission’s (SEC) latest probe against Paxos, the issuer of Binance USD (BUSD), has left the crypto industry triggered. However, Changpeng Zhao (CZ), CEO of Binance came forward to clear the air over the probe.

It happens to be the Securities and Exchange Commission (SEC) that has duly informed the crypto company, Paxos Trust Co., which happens to be a crypto firm, that it is contemplating suing the company. This is with regard to its suspicion of the entity having violated investor protection laws. As per information from reliable sources, this happens to be in accordance with the SEC’s ongoing campaign involving the enforcement of crypto.

The New York Department of Financial Services (NYDFS) ordered crypto infrastructure firm Paxos to stop issuing the stablecoin Binance USD (BUSD), a Binance spokesperson told The Block.