Binance CEO, Changpeng Zhao (CZ) finally broke his silence to present his take on the U.S. SEC’s probe on Paxos in relation to stablecoin Binance USD (BUSD). However, Paxos announced that it will be ending its relationship with Binance for the BUSD.
Binance CEO Backs BUSD
Since the alleged U.S. SEC probe on Paxos broke out, the crypto community around the globe has been discussing its repercussions over the stablecoins and market. However, Binance CEO dropped some hints about it.
CZ stated that IF the court rules out that BUSD is a security then it will have a profound effect on how the crypto industry will move ahead. However, this will be restricted to the jurisdiction where it is ruled.
He added that the world’s largest crypto exchange will still be supporting BUSD for the foreseeable future. Meanwhile, this scrutiny will lead the users to migrate to other stablecoins from BUSD over time. However, CZ assured that Binance will be making some product adjustments according to decisions.
The actions will include moving away from BUSD as the main pair for trading. However, Binance will be reviewing other projects too in accordance with the current regulatory uncertainty.
What Paxos Said On US SEC Probe?
Paxos announced that Paxos will be halting the issuance of new BUSD tokens from February 21. This will be done on the orders of the New York Department of Financial Services (NYDFS). It mentioned that Paxos will continue to manage BUSD dollar reserves.
It added that the BUSD will remain fully supported by Paxos and redeemable to all users till February 2024. However, new and existing Paxos users will be allowed to redeem their funds in US dollars. Users can also convert their BUSD tokens to Pax Dollar (USDP).