Binance has already been harassed by the authorities in recent years, and is under even more pressure in mid-February.

Currently, it can be stated: crypto investors no longer need a stablecoin. Although the peg to the US dollar was briefly shaken, the BUSD rate as a whole remained at about $ 1. But the market capitalization is steadily declining. In 24 hours, the market capitalization of BUSD decreased by about $470 million (about 3%). This means that many users exchanged their stablecoins for other assets (for example, US government bonds) on Paxos.

It is expected that the BUSD rate will eventually fall to zero if the US authorities continue to pressure. After the NYDFS decision, there is a risk of additional troubles, because the influential American securities regulator SEC also wants to remove BUSD from the market. According to the regulator, a stablecoin is not a digital voucher, but a security. And it should have been registered, but it didn't happen.

While the capitalization of BUSD is rapidly melting, other things are happening. Trust in Binance has been shaken again. According to the analytical company Nansen, cryptocurrency stablecoins worth more than $1 billion (together with BUSD alternatives) were withdrawn from the leading crypto exchange within 24 hours.

It should also be noted that the Binance BNB token, which is used to pay trading fees, is also under pressure. News about the ban on BUSD led to a sharp drop in prices for BNB (the token fell by 11% in a week).

Meanwhile, it became obvious that not only the financial authorities of the United States, but also competitors, took up arms against Binance. The notification of the New York Financial Supervision Authority in the fall of 2022 that BUSD is not sufficiently covered by Binance reserves was reportedly received from Circle. That is, the company that issues the USDC stablecoin in cooperation with Binance's competitor Coinbase. At least, that's what Bloomberg reports.