BUSD's market cap has been cut in half to $8B, one month after NY regulators prohibited Paxos from issuing more of the Binance-sponsored USD stablecoin.
Last week, Binance announced it was swapping the BUSD in its SAFU insurance fund into USDT and TUSD.
Both stablecoins are issued by non-U.S. companies and have no audits, only attestation reports. TUSD's accountant is Armanino CPA, the same firm used by FTX US.
When asked to comment, a Binance spokesperson said: "Paxos has informed us that they have been directed to cease minting new BUSD by the New York Department of Financial Services (NYDFS). BUSD is a stablecoin wholly owned and managed by Paxos. As a result, BUSD market cap will only decrease over time. Paxos will continue to service the product, manage redemptions, and will follow-up with additional information as required. Paxos also assured the funds are safe, and fully covered by reserves in their banks.
Given the ongoing regulatory uncertainty in certain markets, we will be reviewing other projects in those jurisdictions to ensure our users are insulated from further undue harm."
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