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Coinbase CEO Explains BUSD Delisting Due to Liquidity Concerns

Following the suspension of Binance USD (BUSD) on the exchange, Coinbase CEO Brian Armstrong appeared on Bloomberg TV to explain the decision. According to Armstrong, the stablecoin was delisted due to liquidity concerns after New York regulators ordered the issuer, Paxos, to stop minting the token.

Brian Armstrong
Brian Armstrong

"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.