Circle Files Complaint with NYDFS Regarding BUSD

Last year, Circle filed a complaint with the New York State Department of Financial Services (NYDFS) regarding the quality of Binance USD stablecoin reserve management, Bloomberg has reported.

The USDC issuer has pointed to an alleged under-collateralization of BUSD.

The NYDFS has this month initiated an investigation into BUSD issuer Paxos, an infrastructure company.

By order of the regulator, the firm will stop issuing “stablecoin” from February 21. According to CoinGecko, the stablecoin has a market capitalization of $15.7 billion. In this metric, BUSD is second only to USDT and USDC.

According to The Wall Street Journal, the SEC intends to sue Paxos for issuing unregistered stablecoin securities.