{"id":74066,"date":"2023-02-14T12:35:01","date_gmt":"2023-02-14T10:35:01","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=74066"},"modified":"2025-09-09T17:59:04","modified_gmt":"2025-09-09T14:59:04","slug":"bloomberg-circle-complains-to-nydfs-about-binances-stablecoin","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/bloomberg-circle-complains-to-nydfs-about-binances-stablecoin\/","title":{"rendered":"Bloomberg: Circle complains to NYDFS about Binance\u2019s stablecoin"},"content":{"rendered":"

In 2022, Circle filed a complaint with the New York State Department of Financial Services (NYDFS) regarding the quality of reserve management for the Binance USD stablecoin (BUSD). Bloomberg reports.<\/p>\n

The issuer of the competing asset USDC pointed to allegedly insufficient backing for BUSD.<\/p>\n

Earlier, such a deficiency noted<\/a> by ChainArgos founder Jonathan Reiter.<\/p>\n

In February, NYDFS initiated an investigation<\/a> into the BUSD issuer\u2014the infrastructure company Paxos.<\/p>\n

By order of the regulator, the firm will stop issuing the \u201cstablecoin\u201d from February 21. According to CoinGecko<\/a>, the stablecoin has a market capitalization of $15.7 billion. On this metric, BUSD trails only USDT from Tether ($68.4 billion) and USDC from Circle ($41 billion).<\/p>\n

\"Bloomberg:
Data: CoinGecko.<\/figcaption><\/figure>\n

According to The Wall Street Journal, the SEC<\/span> intends to sue Paxos<\/a> for issuing unregistered securities in the form of a stablecoin.<\/p>\n

\n

\u201cIf BUSD is considered a security, it goes without saying that other fully backed stablecoins, including Circle’s USDC, will receive a similar status,\u201d said Prometheum co-CEO Aaron Kaplan to The Block<\/a>.<\/p>\n<\/blockquote>\n

According to Banxa CEO Richard Miko, USDC could become the regulator\u2019s next target. However the expert believes Paxos and Circle have good chances of winning in court against the SEC.<\/p>\n

The Commission named cryptocurrency regulation<\/a> one of its priorities for 2023.<\/p>\n","protected":false},"excerpt":{"rendered":"

In 2022, Circle filed a complaint with the New York State Department of Financial Services (NYDFS) regarding the quality of reserve management for the Binance USD stablecoin (BUSD). Bloomberg reports.<\/p>\n","protected":false},"author":1,"featured_media":74067,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1625,1220,1457],"class_list":["post-74066","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-binance-usd-busd","tag-circle","tag-nydfs"],"aioseo_notices":[],"amp_enabled":true,"views":"20","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/74066","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=74066"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/74066\/revisions"}],"predecessor-version":[{"id":74068,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/74066\/revisions\/74068"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/74067"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=74066"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=74066"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=74066"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}