Binance, a global crypto exchange, announced on Oct. 3 that it will end support for Binance USD (BUSD) borrowing and staking positions by Oct. 25, 2023. The exchange has urged its users to convert their BUSD holdings to First Digital USD (FDUSD) as part of the gradual phasing out of support for the stablecoin. This move appears to be in response to regulatory pressure, as the Securities and Exchange Commission (SEC) has filed a lawsuit against Binance and CEO Changpeng Zhao for several alleged violations of federal securities laws. The SEC’s filing accuses Binance of profiting in billions by courting U.S. investors to buy, sell, and trade on its unregistered platform. Binance has argued that BNB is a native token designed to create an internal economy and does not represent an investment contract, therefore holding that it is not a security. BUSD’s circulating supply has dropped precipitously, from a peak of more than $20 billion to approximately $3 billion, and Binance has removed BUSD from its Secure Asset Fund for Users (SAFU).

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Information	Details
Geography	Global
Countries
Sentiment	negative
Relevance Score	10
People	Securities and Exchange Commission, Changpeng Zhao, Paxos, BAM Management., BAM Trading Services Inc
Companies	BAM Management, Paxos, U.S. Securities and Exchange Commission (SEC), Binance, BAM Trading Services Inc
Currencies	BUSD, US Dollar, Ethereum, Bitcoin, First Digital USD
Securities	None