Binance USD (BUSD) market cap has dropped underneath $10 billion for the first time in around two years. It is believed that United States took regulatory actions on its token issuer and arranged delisting from a major crypto exchange, as stated by Cointelegraph.
According to Cointelegraph, the stablecoin’s market capitalisation has plummeted to $9.66 billion. Reportedly, BUSD was subjected to a potential lawsuit against Paxos by United States Securities and Exchange Commission (SEC) due to potential hampering of investor protection laws. Paxos has received orders from New York District of Financial Services (NYDFS) to halt minting and issuing BUSD on February 12, 2023, also.
On the basis of information by Cointelegraph, previously, cryptocurrency exchange Coinbase revealed that BUSD will be delisted from its exchange on March 13, 2023, over the stablecoin not complying with their listing standards. Experts believe that the wider crypto market has seen a drop in market capitalisation, with blame being placed on Silvergate Bank controversy.
Moreover, Cointelegraph noted that Binance-branded stablecoin witnessed an upward trend to become the third-largest stablecoin behind Tether (USDT) and USD Coin (USDC). Currently, the stablecoin carries a 10th rank based on market cap among all cryptocurrencies.
(With insights from Cointelegraph)