Coinbase CEO Brian Armstrong clarified on Wednesday morning during an appearance on Bloomberg TV that the exchange had decided to suspend trading of Binance USD (BUSD) due to concerns about its liquidity. This follows their earlier statement that the stablecoin no longer met Coinbase’s listing standards following their internal monitoring and review processes. Armstrong did not provide any additional details on this.
“The reason we did that was that Paxos, the issuer of BUSD, had been ordered to stop minting it, so we were concerned about liquidity issues for our customers.”Brian Armstrong
The New York Department of Financial Services (NYDFS) has recently issued an order to Paxos, instructing the firm to stop minting the Binance-branded BUSD token due to unresolved issues regarding Paxos’ oversight and control over its relationship with Binance. Furthermore, the Securities and Exchange Commission is reportedly planning to take legal action against Paxos for selling the BUSD token as an unregistered security.
Coinbase earlier said its digital asset listings group has a rigorous vetting and review process for evaluating assets to determine whether they meet legal, compliance, and technical security standards. This is followed by further business assessments and ongoing monitoring to ensure that the asset continues to meet these standards. As stated on Coinbase’s website, this process informs their decision of which assets to list on their exchange.
Coinbase CEO says interests aligned with SEC on crypto regulation
Brian Armstrong also said on Wednesday on Bloomberg TV that Coinbase’s interests align with those of the U.S. Securities and Exchange Commission (SEC). He further indicated a strong working relationship between Coinbase and the SEC, which is responsible for investor protection, by citing past meetings with Chairman Gary Gensler. Armstrong commented that the company had enjoyed a “good relationship” with various staff members and commissioners at the SEC.
“We’re going to continue to invest in those relationships. Our interests are aligned.”Brian Armstrong
Coinbase CEO Brian Armstrong believes that bringing the digital assets industry “within the regulatory perimeter” of the U.S. would provide consumers with better protections, which is an interest shared by both Coinbase and the SEC. At the same time, he emphasized his desire to preserve the potential innovation that cryptocurrencies could bring to financial markets. Armstrong hopes this will balance security and innovation, providing the best of both worlds for consumers.