Binance USD (BUSD) stablecoin market supply value fell below $10 billion for the first time since the end of June 2021, according to data CoinGecko.
At the time of writing, the figure is $9.7 billion.
In the rating among stablecoins, BUSD ranks third, behind USDT and USDC.
In February, the New York State Department of Financial Services (NYDFS) launched an investigation into Binance USD issuer Paxos.
Later, its representatives announced a halt in the issuance of new coins in accordance with the requirements of the regulator and a break in cooperation with Binance regarding the stablecoin. The firm will continue to support buyout and conversion operations until at least February 2024.
It also became known about the threats SEC sue Paxos for violating securities laws when issuing BUSD.
According to Bloomberg, Circle filed a complaint with the NYDFS in 2022 regarding the quality of its stablecoin reserve management.
Amid regulatory pressure, the Aave lending protocol community decided to consider a proposal to freeze the use of BUSD as collateral, and Coinbase announced a halt to stablecoin trading.
Markus Theelen, head of research at cryptofinance service Matrixport, said regulatory pressure on BUSD does not pose a risk to other stablecoins.
Earlier, Binance CEO Changpeng Zhao predicted an expansion in the number of non-dollar stablecoins.
Source: Cryptocurrency
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