Coinbase Puts a Halt on BUSD

Coinbase recently tweeted that they are suspending the exchange of Binance USD (BUSD) on March 13th. In a subsequent tweet, Coinbase clarified that users would still have access to their BUSD, retaining the ability to transfer it to their personal wallets, but all trading activity would halt. 

We regularly monitor the assets on our exchange to ensure they meet our listing standards. Based on our most recent reviews, Coinbase will suspend trading for Binance USD (BUSD) on March 13, 2023, on or around 12pm ET.

— Coinbase Assets (@CoinbaseAssets) February 27, 2023

The post gave little details and did not explain why, but it can be assumed that Binance is under a lot of pressure lately with their stablecoin, causing Coinbase to seek some distance from the asset.

Earlier in February, Paxos, the group responsible for minting the BUSD coin, was issued a lawsuit by the SEC which forced them to pause the creation of any new tokens. It might be safe to assume that Coinbase, as a publically traded company, wishes to distance itself from this lawsuit with the decision.