Any reason why wouldn't they want this stable coin to be created anymore? Moving to something else? Or is there some issue with it?
And Binance have not made this decision, New York state are. One more reason for no crypto company to set up in NY state but that's up to them...
(Edit, one source says it is the SEC, others say the NY regulator...)
My very amateur guess is that Paxos sees stability issues with Binance and wants to cut ties, or they are getting too much regulatory scrutiny to make it worth it and are dropping them like a bad habit.
You say that as if it means something. Enron routinely passed audits from a Big 4 company.