Brian Armstrong, the CEO of American cryptocurrency exchange Coinbase has now shared further explanations after his exchange recently delisted Binance USD (BUSD), a Binance-backed stablecoin for “not meeting its standards.”
According to Brian during an interview on Bloomberg TV, the action to delist the asset was solely to protect its customers as it worries about the liquidity of BUSD now that Paxos, the issuer of the stablecoin has been ordered to stop issuing new ones.
Recall that in what continued a streak of a regulatory clampdown on the industry, stablecoin issuer Paxos came under investigation of the US regulators including the Securities and Exchange Commissions (SEC), and the New York Department of Financial Services (NYDFS) for offering “unregistered securities”.
The regulators have since ordered Paxos to stop the issuance of dollar-pegged BUSD even though the blockchain firm said it has engaged in constructive discussions with the regulators.
Prior to the crypto veteran’s recent interview, Coinbase in a series of Tweets on February 27 announced its decision to halt the trading of BUSD on its platforms (Coinbase.com, Coinbase Prime, Coinbase Exchange, and Coinbase Pro) beginning from March 13.
We regularly monitor the assets on our exchange to ensure they meet our listing standards. Based on our most recent reviews, Coinbase will suspend trading for Binance USD (BUSD) on March 13, 2023, on or around 12pm ET.
— Coinbase Assets (@CoinbaseAssets) February 27, 2023
According to the exchange, it reached this decision after its listing group which reviews and evaluates digital assets against legal compliance and technical security voted against the BSUD, the third stablecoin by market capitalization.
Coinbase Campaigns for Better Regulation for the Industry
The U.S.-based leading exchange platform recently launched a campaign initiative dubbed Crypto 435 to mobilize crypto advocates to influence policymaking in the burgeoning industry. The initiative is geared towards providing users across all 435 Congressional Districts across the US with the required tools and information to make their voices heard and recognized.
Even though many in the crypto community applauded the initiative, several others, especially XRP users called it hypocritical. This is because investors wanted the exchange to relist the XRP token on its platform after it had initially delisted it following allegations from the SEC that the asset is a security.
Equally, the publicly traded cryptocurrency trading firm announced its plans to bring on board a crypto policy education initiative that will include a voter registration portal based on candidates’ position of digital assets.
As such, Coinbase users through conversations and educational resources will be allowed to freely share their opinions on the numerous political and regulatory problems surrounding cryptocurrencies in the United States.
