Coinbase CEO Brian Armstrong said in an interview with Bloomberg TV on Wednesday that Coinbase's decision to suspend BUSD trading was due to concerns about liquidity. As Paxos has been ordered to stop minting BUSD, Coinbase is concerned about the liquidity issues customers are facing. Armstrong also defended Coinbase’s staking product, saying it is not a security, and reiterated that the company is prepared to defend it in court if necessary, though it would prefer to work with regulators. Coinbase previously stated that according to its internal monitoring and review process, BUSD no longer meets the listing standards, so it will delist the stablecoin. But the exchange did not provide any other details. As previously reported, the New York Department of Financial Services (NYDFS) recently ordered Paxos to stop minting BUSD due to several unresolved issues with Paxos’ oversight of its relationship with Binance. In addition, the U.S. Securities and Exchange Commission (SEC) plans to sue Paxos for selling unregistered securities.