What if court rules BUSD A Security, Binance CEO CZ answers

Binance CEO Changpeng Zhao (CZ) has finally broken his silence to give his take on the US SEC investigation into Paxos regarding the Binance USD (BUSD) stablecoin. However, Paxos has announced that it will end its relationship with Binance for BUSD.

Binance CEO backs BUSD

Ever since the alleged US SEC investigation into Paxos broke, the crypto community around the world has been discussing its implications for stablecoins and the market. However, the CEO of Binance 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 forward. However, this will be limited to the jurisdiction where it is governed.

He added that the world’s largest crypto exchange will continue to support BUSD for the foreseeable future. In the meantime, this audit will lead users to migrate to other stablecoins from BUSD over time. However, CZ assured that Binance will make some product adjustments according to the rulings.

Actions will include moving away from BUSD as the main trading pair. However, Binance will also review other projects in light of the current regulatory uncertainty.

What did the Paxos say to the US SEC investigation?

Paxos announced that Paxos will stop issuing new BUSD tokens as of February 21st. This will be done at the behest of the New York Department of Financial Services (NYDFS). It said the Paxos will continue to manage US dollar reserves.

He added that BUSD will remain fully supported by Paxos and will be redeemable to all users until February 2024. However, new and existing Paxos users will be able to redeem their funds in US dollars. Users can also convert their BUSD tokens to Pax Dollar (USDP).

Ashish believes in Decentralization and has a keen interest in the evolution of Blockchain technology, cryptocurrency ecosystem and NFTs. His goal is to create awareness around the growing Crypto industry through his writings and analysis. When he’s not writing, he’s playing video games, watching a thriller, or out for some outdoor sports. Reach me at [email protected]

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