"We did that because Paxos, the issuer of BUSD, had been ordered to stop minting it, so we were concerned about liquidity issues for our customers," Armstrong told Bloomberg, referring to the order from the New York Department of Financial Services (NYDFS).
Regulatory Relationships with Coinbase and the SEC
Coinbase CEO Discusses Exchange's Positive Relationship with SEC Amid Crypto Crackdown
In the same interview, Armstrong also discussed Coinbase's relationship with regulators, stating that the exchange maintains a positive relationship with the SEC despite what regulators have seen as a crypto crackdown.
The delisting of BUSD and Armstrong's comments come amid recent controversies surrounding the stablecoin and its issuer, Paxos, and its regulatory interactions.