The BUSD market cap has fallen below $10 billion for the first time in almost two years amid a United States regulatory crackdown on its token issuer and a planned delisting from a major crypto exchange.
BUSD’s market cap has been on a steep downward trajectory since its all-time high market cap of $23.49 billion, which it hit on Nov. 15, just a few days after the shock collapse of FTX.
As of March 3, the stablecoin’s market cap has fallen to $9.66 billion which are levels not seen since June 29, 2021.
Most recently, BUSD has been the subject of a potential lawsuit against Paxos by the United States Securities Exchange Commission on Feb. 12 over a possible violation of investor protection laws. Since then, $6.65 billion has been shaved off BUSD’s market cap.
Paxos was also ordered by the New York District of Financial Services to stop minting and issuing BUSD on Feb. 12 as well, which has likely contributed to the stablecoin’s market cap fall.
Earlier this week, cryptocurrency exchange Coinbase announced that it would be delisting BUSD from its exchange on March 13 because the stablecoin “no longer met our listing standards.
The wider crypto market has also seen a fall in market cap, with many pointing to the recent controversy surrounding Silvergate Bank with the late filing of its annual 10-K financial report on March 1.
