Coinbase To Suspend Binance USD Stablecoin, Liquid Staking Overtakes DeFi Lending As 2nd Largest Crypto Sector
Coinbase will suspend trading of Binance USD (BUSD) starting March 13, 2023, the US cryptocurrency exchange announced.
The suspension is based on Coinbase’s internal monitoring process, which found that the stablecoin (BUSD) was not meeting its listing standards, CoinDesk quoted a spokesman for the cryptocurrency exchange as saying.
As a result of the suspension, Coinbase.com, Coinbase Pro, Coinbase Exchange, and Coinbase Prime will be affected. Coinbase said users can still access their BUSD funds and withdraw them at any time.
Following the news, Binance Coin (BNB), Binance’s exchange coin, fell 1 percent.
Liquid staking is emerging as the second largest crypto sector
Liquid staking is currently larger than decentralized lending and borrowing. Liquid staking allows users to earn rewards for locking cryptocurrencies on a blockchain network while maintaining liquidity of locked funds.
Crypto assets deposited in liquid staking logs totaled $14.1 billion as of Monday, making it the second largest crypto market sector, CoinDesk reported. Decentralized finance (DeFi) lending and lending protocols had a total value of $13.7 billion, the third largest, while decentralized exchanges held $19.4 billion worth of assets.
Ethereum’s upcoming software upgrade in Shanghai, which will allow players to withdraw their staked Ethereum (ETH) and accumulated rewards for the first time, has sparked investors’ interest in liquid staking.
Ryan Selkis, CEO of crypto research firm and data provider Messari, said the upgrade will create healthy competition between liquid staking solutions and also strengthen ETH’s position. He said the move would give users the reassurance of retaining sovereignty over their assets.
By opening up for withdrawals, the upgrade aims to improve overall liquidity. With a growth rate of almost 60 percent, liquid staking is the best-performing crypto sector this year.
Robinhood faces an SEC investigation
SEC officials have subpoenaed Robinhood Markets Inc., the company behind the popular trading app.
The company announced in its most recent 10-K filing with the SEC that the investigation took place in December 2022.
In it, the company listed a subpoena from the SEC regarding Robinhood’s “supported cryptocurrencies, cryptocurrency custody, and platform operations” among various disclosures that pose a potential risk to its business.
Currently, Robinhood offers 18 cryptocurrencies on its trading platform, including Bitcoin, Ethereum, and Dogecoin. With digital assets, investors can start with as little as $1.
Following the failure of FTX last year, the SEC launched a crackdown on the cryptocurrency industry