The New York State Department of Financial Services, or NYDFS, reportedly received complaints from Stablecoin Issuer Circle regarding Binance’s reserves ahead of the BUSD crackdown.
As reported by Bloomberg Feb. 13, Circle have complainedwith NYDFS in the fall of 2022 that Binance’s reserves were insufficient to support its tokens. This includes the stablecoin Binance USD.
Circle’s actions came before the US Securities and Exchange Commission filed a lawsuit against Paxos, alleging that BUSD was an unlisted securities, while NYDFS announced its action on Feb. 13, ordering Paxos to “cease the Produce BUSD coin issued by Paxos,” and reiterated the requirement for the token under the regime to be backed entirely with cash or cash equivalents.
In a statement in response to the SEC lawsuit Feb. 13, Paxos said BUSD is not a securities under federal securities laws. and added that
“The BUSD issued by Paxos is always backed 1:1 with US dollar reserves. We are in contact with SEC officials on this matter and stand ready to take serious action if necessary.”
The post Circle’s complaint to NYDFS about BUSD reserves appeared first on Bitcoin Addict.