Coinbase to Suspend Binance USD Stablecoin, Liquid Staking Overtakes DeFi Lending as Second Largest Crypto Sector
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Here are some of the most important developments from the crypto world in recent days
Coinbase will suspend trading of Binance USD (BUSD) from March 13, 2023, the US cryptocurrency exchange has said.
The suspension is based on the internal monitoring process of Coinbase, which found that Stablecoin (BUSD) does not meet listing standards, CoinDesk quoted a spokesperson 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 advised that users will still be able to access their BUSD funds and withdraw them at any time.
Following the news, Binance coin (BNB), the exchange coin of Binance, fell 1 percent.
Liquidity stakes emerge 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 in a Blockchain network while retaining the liquidity of locked funds.
Crypto assets deposited in liquid stake protocols totaled $14.1 billion on 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 had assets worth $19.4 billion.
Ethereum’s upcoming Shanghai software upgrade, which will enable stakers to withdraw their staked Ethereum (ETH) and accumulated rewards for the first time, has piqued investor interest in floating stakes.
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 security to maintain sovereignty over their assets.
By opening up withdrawals, the upgrade is expected to improve overall liquidity. With a growth of 60 percent, liquid betting is the best performing crypto sector this year.
Robinhood faces SEC investigation
US Securities and Exchange Commission (SEC) officials subpoenaed Robinhood Markets Inc., the company behind the popular trading app.
The company disclosed in its most recent 10-K filing with the SEC that the investigation occurred in December 2022.
In it, the company listed among the various disclosures that pose a potential risk to the business, a subpoena from the SEC regarding Robinhood’s “backed cryptocurrencies, custody of cryptocurrencies and platform operations.”
Currently, Robinhood offers 18 cryptocurrencies on its trading platform, including Bitcoin, Ethereum and Dogecoin. With digital assets, investors can get started with as little as $1.
After the failure of FTX last year, the SEC has launched a tough attack on the cryptocurrency industry
