7 months ago
1 min read
Binance USD (BUSD) sees 60% drop in supply following SEC enforcement action
Binance USD (BUSD), the third-largest stablecoin, has seen its supply shrink by 60% since mid-February as it has been beleaguered. This exodus has been caused by the U.S. Securities and Exchange Commission (SEC), which classified the Binance stablecoin issuer Paxos as a security on February 13. The move prompted Paxos to announce that it would no longer be minting BUSD, leading to a significant outflow of funds. As a result, BUSD’s market capitalization has slumped from just over $16 billion to around $10 billion, with its market share declining to 7.3% from around 20% last year. This could have a