I think many are already aware of the news that the SEC has filed a lawsuit against Paxos, the company that issues BUSD for Binance. The New York Department of Financial Services (NYDFS) has ordered the issuance of new BUSDs to cease.
Here's what CZ writes about this on Twitter
“BUSD is issued, redeemed and owned by Paxos, which is owned by NYDFS.
As a result of these events, BUSD's market capitalization will only decrease over time.
Paxos continues to serve projects and manage bans. Paxos also assured us that#SAFUfunds are fully backed by the reserves held by their banks, and their reserves have already been audited by company auditors on multiple occasions.
Regarding the proposed SEC lawsuit against Paxos, I have no information about it other than public news articles. The lawsuit is between the US SEC and Paxos.
I am not an expert on US laws. But I agree with the logic of Miles Deutscher:
“The SEC has designated BUSD an “unregistered security” and is suing its issuer, Paxos. But how the hell can a STABILITY coin be considered a security if it doesn't meet the criteria of the Howey test? No one has ever had an "expectation of profit" when buying $BUSD."
CZ also said that they will set up BUSD, but most likely they will move to other stables.
What I've done?
In fact, I trust Binance and, by the way, that $BUSD will cost $1 until my last breath, but since $BUSD will disappear as a liquid asset in the foreseeable future, for now I have changed everything to $USDT.
We also have $USDC and $DAI.