Share this article
Paxos to Stop Minting Stablecoin BUSD Following Regulatory Action
It was reported on Sunday that the SEC also intended to sue Paxos for selling BUSD as an unregistered security.
Updated May 9, 2023, 4:08 a.m. Published Feb 13, 2023, 11:26 a.m.
CORRECTION (Feb. 13, 2023, 16:10 UTC): Corrects that Paxos said it would cease issuing Binance USD at the direction of the New York Department of Financial Services, not the Securities and Exchange Commission.
Stablecoin issuer Paxos will stop minting new Binance USD (BUSD) tokens at the direction of the New York Department of Financial Services (NYDFS), with the news coming just after a report of the threat of legal action from the U.S. Securities and Exchange Commission (SEC).
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
It was reported on Sunday that the SEC intended to sue Paxos for selling BUSD as an unregistered security. This came only days after CoinDesk reported that Paxos was under investigation by NYDFS.
BUSD is a Binance-branded stablecoin issued and managed by Paxos. Following the news of the SEC's legal action, Binance issued a statement that it would be reviewing projects in uncertain markets where regulatory uncertainty could cause detriments to its users.
NYDFS said that it had instructed Paxos to cease minting BUSD due to several unresolved issues related to Paxos’ oversight of its relationship with Binance. Paxos said it is ending its relationship with Binance for BUSD.
"The Department is monitoring Paxos closely to verify that the company can facilitate redemptions in an orderly fashion subject to enhanced, risk-based, compliance protocols," NYDFS said in a statement.
"All BUSD tokens issued by Paxos Trust have and always will be backed 1:1 with US dollar-denominated reserves, fully segregated and held in bankruptcy remote accounts," Paxos said in a statement on Monday.
Following Sunday's news, some $52 million of BUSD were sent to exchanges in a 24-hour period, as per data by CryptoQuant, indicating a desire by users to turn them into fiat or other stablecoins.
In the past 24 hours, BNB Chain’s native token slid over 7% while BUSD saw massive inflows to crypto exchanges.
Read more: SEC Chief Gensler Warns Crypto Firms to Comply With Rules After Kraken Shutters US Staking Program
UPDATE (Feb. 13, 11: 40 UTC): Adds statement from NYDFS and additional background.
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
French Banking Giant BPCE to Roll Out Crypto Trading for 2M Retail Clients
The service will allow customers to buy and sell BTC, ETH, SOL, and USDC through a separate digital asset account managed by Hexarq.
What to know:
- French banking group BPCE will start offering crypto trading services to 2 million retail customers through its Banque Populaire and Caisse d’Épargne apps, with plans to expand to 12 million customers by 2026.
- The service will allow customers to buy and sell BTC, ETH, SOL, and USDC through a separate digital asset account managed by Hexarq, with a €2.99 monthly fee and 1.5% transaction commission.
- The move follows similar initiatives by other European banks, such as BBVA, Santander, and Raiffeisen Bank, which have already started offering crypto trading services to their customers.
Top Stories
