Bitcoin was up 1.8% over the past day, trading around $22,190 by 3:15 p.m. EST, according to TradingView data. The leading crypto by market cap fell on the news that Paxos was ordered to stop issuing the BUSD stablecoin.

After the cryptocurrency sector was hit by the news that crypto firm Paxos, the issuer of Binance dollar-pegged stablecoin, was ordered by the regulators to halt the BUSD minting, nearly $1 billion in digital assets flew out of the crypto trading platform Binance in a single day.

Paxos, the issuer of the Binance stablecoin BUSD has announced that it will no longer mint the dollar-pegged asset from Feb. 21.

Crypto financial services Matrixport's head of research believes the recent scrutiny of Paxos and its Binance USD BUSD token is not a direct attack on stablecoins themselves. In a Feb. 14 analysis, Matrixport's Markus Thielen suggested that Paxos Trust Company, the issuer of the Binance USD BUSD, may not have been stringent enough with its oversight of the token. He added that the issue "does not appear to be around stablecoins" in itself. (Cointelegraph)

Bitcoin was the only top 10 non-stablecoin cryptocurrency to gain in Tuesday morning trading in Asia in a market unsettled by regulators in the U.S. targeting digital asset companies. Paxos Trust Co. was ordered on Monday to stop issuing its U.S. dollar-pegged Binance USD (BUSD) stablecoin by New York authorities and it reportedly faces an SEC investigation. BNB, the native currency of Binance the world’s largest crypto exchange, had the biggest drop on the list. (forkast)<br><br>Get the latest news here: Cointime channel—https://t.me/cointime_en<br>

Paxos categorically disagrees with the SEC staff because BUSD is not a security under the federal securities laws. This SEC Wells notice pertains only to BUSD.

Paxos confirmed Monday it received a Wells Notice from the Securities and Exchange Commission, stating it’s prepared to take on the agency and any enforcement actions related to stablecoin Binance USD.

Before Paxos published a press release at 6 a.m. Eastern time Monday, the stablecoin BUSD had approximately 16.16 billion tokens in circulation. In the past eight hours, nearly $290 million has been redeemed, bringing the number of BUSD in circulation to 15.87 billion.

The Aave community is currently considering a proposal to freeze the BUSD reserve on the Aave V2 market in light of Paxos’ move to stop minting BUSD.

February 13, according to Whale Alert, 144,469,760 #BUSD (144,253,055 USD) burned at Paxos Treasury.