Paxos announced that it will stop issuing Binance USD (BUSD) Stablecoins as of February 21, 2023.
This decision was made due to the fact that the SEC (United States Securities and Exchange Commission) included this token in the category of unregistered securities. After that, the New York Department of Financial Services (NYDFS) prohibited Paxos from issuing the dollar-linked steblecoin.
Many investors began to withdraw their capital from BUSD en masse. In just a few hours, they withdrew more than $360 million from this digital asset.