Binance's Chief Executive Officer, Changpeng Zhao (CZ) has finally spoken out with his views on the U.S. SEC's investigations. to top Paxos is linked to the stablecoin Binance USD (BUSD). However, Paxos announced that he would be ending his relationship with Binance for BUSD.
Since the U.S. SEC investigation the charges against Paxos sparked, the worldwide crypto community has been discussing its impact on the stablecoin and the market. However, Binance's Chief Executive Officer did drop some hints about it.
CZ stated that if the court rejected that BUSD is a security then it would have a deep impression on how the crypto industry will move forward. However, this will be limited to the realm of commandments and regulations.
He added that the world's largest crypto exchange will still support BUSD for the foreseeable future. Meanwhile, this research will lead users to migrate to other stablecoins than BUSD from time to time. However, CZ gave assurances that Binance would make some product adjustments following the decision.
The move includes switching from BUSD as the main pair for trading. However, Binance will be looking into other projects as well given the current regulatory uncertainty.
Paxos on the other hand announced that Paxos will stop issuing new BUSD tokens starting February 21st. This will be done at the direction of the New York Department of Financial Services (NYDFS). He said that Paxos would continue to manage the BUSD dollar rizab.
He added that BUSD will remain fully supported by Paxos and redeemable to all users until February 2024. However, new and existing Paxos users will only be allowed to redeem their funds in US dollars. Users may also exchange their BUSD tokens for Pax Dollars (USDP).
