Stablecoins remain a cryptocurrency industry FUD target despite US regulatory worries for Binance Dollar (BUSD).
US regulators and the Justice Department investigated Binance's business practises. A proposed SEC rule would strengthen surveillance of crypto custodial exchanges like Coinbase and Binance.
The US regulatory community has been vocal about Binance's problems, and the FUD surrounding BUSD is still strong as stablecoin volumes on cryptocurrency exchanges continue to fall. The U.S. Securities and Exchange Commission (SEC) recently placed restrictions on the issuing of Binance USD (BUSD). Exchanges are also taking stablecoins out of circulation in addition to the rise in Bitcoin (BTC). Notwithstanding the difficult scenario in the US, Binance is now making some significant moves.
Investigations of Binance's business practises have previously been conducted by the US regulatory bodies and the Justice Department. Exchanges like Coinbase and Binance that offer crypto custody services would come under increased scrutiny under a new rule that the SEC just proposed.
As a result, there were rumours that Binance had chosen to remove any cryptocurrencies with US addresses from its list. CEO CZ promptly denied these rumours. He claimed that allegations of delisting were incorrect because "blockchain has no borders." However, he emphasised that his organisation has temporarily withdrew some funds from potential commercial transactions with insolvent companies. This begs the question of whether the $1.02 billion Voyager acquisition has been harmed by the withdrawal of financing. The purchase of the Voyager hasn't received any updates from CZ as of yet.
The Voyager arrangement is still awaiting a final court hearing and the consent of the creditors. Voyager clients will be helped to recover 51% of the assets if the arrangement is approved by the US Bankruptcy Court. According to the asset purchase deal, Binance US would receive $20 million in cash in addition to the transfer of Voyager's clients. The unstable cryptocurrency lender submitted a bankruptcy petition in July 2022 in order to obtain bankruptcy protection due to its exposure to the problematic cryptocurrency hedge fund Three Arrows Capital.
