Binance Coin (BNB)BlockchainCryptocurrencyCryptocurrency RegulationNewsPrice AnalysisTrading

BNB Token Plummets as SEC takes aim at BUSD

The Securities and Exchange Commission’s (SEC) action against Binance and Paxos over BUSD stablecoin has scared off investors. According to data from CoinGecko, the native token of the leading exchange, BNB, dropped by 6% yesterday before recovering some on Wednesday morning.

In addition, data gathered by Nansen shows that traders are pulling out their funds from Binance. In the past 24 hours, the exchange has processed withdrawals worth $568 million.

BNB is changing hands for $290 as of this writing, having dropped from approximately $303 in the last 48 hours. Overall, Binance’s native token has had a rough week, declining by over 11% over the last seven days. However, despite the price drop, BNB remains among the largest coins by market cap. Its total value sits at $46 billion, as per CoinGecko.

Binance’s BUSD Woes


Paxos, the issuer of the popular stablecoin, BUSD, confirmed yesterday that the SEC was planning to launch an enforcement action for alleged violation of investor protection policies. The regulator also claims that the stablecoin is issued as an unregistered security.

📰 Also read:  Azalea Disavows $300K Memecoin Linked to Alleged Scammer Sahil Arora

However, Binance boss Changpeng Zhao tends to differ from the SEC statement. He says if BUSD is considered a security, then it could affect the development of the crypto industry. Zhao continues to argue that no one buys a stablecoin in anticipation of more profit; therefore, BUSD is not a security.

Along with the SEC’s planned lawsuit, the New York Department of Financial Services, an institution that regulates Paxos, also asked the crypto firm to suspend the issuance of BUSD. However, Paxos has continued to disagree with these regulators citing that BUSD does not fit the description of security under the stipulated securities laws.

Paxos Says the Circulating BUSD Could be Redeemable for a Year

Paxos partnered with Binance to launch BUSD back in 2019. The stablecoin is currently the third biggest stablecoin by market cap, with a total value of $16.2 billion. Although BUSD will no longer be minted from February 21, Paxos says it will continue supporting the stablecoin for at least a year.

This week’s move on Paxos indicates United States regulators’ efforts to ensure every crypto firm complies with the law. The SEC had previously hit exchange Kraken with a $29 million fine for not registering its crypto-staking service with the agency.

📰 Also read:  How to Buy Filecoin (FIL): The Best Exchanges to Use in 2024

Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.

📰 Also read:  UAE Partners with US for $1.5bn AI Deal Aiming for Global Leadership


Andrew Richard

Andrew is a news writer for Tokenhell, he enjoys tuning in to the daily crypto markets and writing about the latest updates and happenings.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Skip to content