Binance-Backed BUSD Circulating Supply Drops
According to data from CryptoSlate, the circulating supply of Binance USD (BUSD) has dropped below $2.8 billion, which is the lowest level since the beginning of 2021, when the stablecoin was still relatively new to the crypto market.
Since it was classified as a security by the U.S. Securities and Exchange Commission (SEC) in its legal actions against the exchange, the market share of the Binance-backed stablecoin has drastically decreased this year.
The New York Department of Financial Services additionally compelled BUSD issuer Paxos to halt additional mints of the instrument. This SEC designation was strongly disagreed with by Binance and Paxos.
Even though Binance has pledged to continue supporting the stablecoin until it is completely phased out, regulatory actions have sparked a quick exodus from the troubled stablecoin within the crypto community, causing its circulating supply to drop from a peak of over $20 billion last year to under $3 billion today.
(With inputs from Shikha Singh)
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