Binance USD market cap falls below $10B amid rising regulatory concerns

Binance USD (BUSD) marketplace headdress has fallen beneath $10 cardinal for the archetypal clip successful astir 2 years amid a United States regulatory crackdown connected its token issuer and a planned delisting from a large crypto exchange.

BUSD’s marketcap has been connected a steep downward trajectory since its all-time precocious (ATH) marketplace headdress of $23.49 cardinal connected Nov. 15, conscionable a fewer days aft the shock illness of FTX.

As of today, the stablecoin’s marketcap has fallen to $9.66 cardinal — levels not seen since Jun. 29, 2021.

Market headdress of Binance USD (BUSD) implicit the past 12 months. Source: CoinGecko.

Most recently, BUSD has been the taxable of a imaginable lawsuit against Paxos by the United States Securities Exchange Commission (SEC) connected Feb. 12 implicit a imaginable usurpation of capitalist extortion laws. Since past SEC, $6.65 cardinal has been shaved disconnected BUSD’s marketplace cap.

Paxos was besides ordered by the New York District of Financial Services (NYDFS) to stop minting and issuing BUSD connected Feb. 12 too, which is apt to person contributed to the stablecoin’s marketplace headdress fall.

Earlier this week, cryptocurrency speech Coinbase announced it volition beryllium delisting BUSD from its speech connected Mar. 13 due to the fact that the stablecoin “no longer met our listing standards,” a Coinbase spokesperson told Cointelegraph.

The wider crypto marketplace has besides seen a autumn successful marketplace cap, with galore pointing to the caller contention surrounding Silvergate Bank with the precocious filing of its yearly 10-K fiscal report connected Mar. 1.

Related: Unstablecoins: Depegging, slope runs and different risks loom

Upon its launch successful September 2019, the Binance-branded stablecoin rapidly surged to go the 3rd largest stablecoin down Tether (USDT) and USD Coin (USDC).

The stablecoin is presently successful 10th presumption successful presumption of marketplace headdress crossed each cryptocurrencies. The adjacent crypto token connected the database is Solana (SOL) with $7.98 cardinal successful marketplace cap.

The largest stablecoins by marketplace cap. Source: CoinGecko.

Interestingly, Binance CEO Changpeng ‘CZ’ Zhao stated successful a Feb. 14 Twitter Spaces that he ne'er thought precise highly of the Binance stablecoin project, adding that helium thought it “may fail” erstwhile it archetypal rolled out.

To relationship for the autumn successful request for BUSD, Binance recently minted astir $50 cardinal worthy of TrueUSD (TUSD) arsenic the cryptocurrency speech looks to diversify its stablecoin holdings.