• BUSD’s market cap has dropped to an all-time low due to regulatory crackdown and fears of delisting from Coinbase.
• Coinbase plans to delist BUSD on March 13th, citing liquidity concerns and not meeting their listing standards.
• Three US senators have also pressed Binance for accountability regarding the coin’s performance.
BUSD Market Cap Drops
BUSD’s market cap has dropped below $10 billion from its all-time high set at $23.49 billion on Nov. 15, 2022. The market cap drop is a new all-time low in the past two years as the coin faces a regulatory crackdown from the US authorities and possible delisting from Coinbase. The value was at $9.66 billion on March 3, 2023, a low that has not been recorded since June 29, 2021.
Delisting From Coinbase
Coinbase, a major US crypto exchange platform, tweeted on Feb 27, 2023, that it plans to delist Binance USD on March 13, 2023, 12 pm ET. The platform cited that BUSD did not meet their listing standards based on their recent reviews. The suspension will affect simple and advanced trading on Coinbase Pro, Coinbase.com, Coinbase Prime, and Coinbase Exchange but investors can still access their BUSD funds and withdraw anytime.
Accountability Questioned By Senators
The market cap decline happened as three US senators wrote a letter to the Department of Justice asking for an investigation into potential manipulation surrounding Tether (USDT) and other leading stablecoins such as USD Coin (USDC) and Binance USD (BUSD). In addition to this inquiry by those three senators there were also inquiries made by two other Senate committees on how these coins are regulated in the United States with regards to anti-money laundering regulations (AML)and consumer protections laws concerning use cases like gambling sites or darknet markets .
Impact On Other Crypto Assets
The news of possible delisting of BUSD has had an impact on other crypto assets as well; most notably being that of the Binance exchange token price (BNB), which has dropped since the news was released by Coinbase. Additionally Brian Armstrong CEO of Coinbase said in a Bloomberg TV appearance that they are suspending it because of concerns over liquidity due to Paxos’s halt in minting after receiving orders from New York Department of Financial Services(NYDFS).
Conclusion
It is clear that regulatory issues have had an effect on both the value and usage of stablecoins such as BUSD; however it remains unclear what further setbacks may occur if more investigations take place or if other exchanges follow suit in delisting them altogether which could severely impact how we use digital currencies in our daily lives going forward .