SEC will not pursue enforcement action against Paxos

Turner WrightJul 11, 2024SEC will not pursue enforcement action against PaxosThe stablecoin issuer received an SEC Wells notice in February 2023 warning of a potential lawsuit over Binance USD as an unregistered security.46 Total views3 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksThe US Securities and Exchange Commission (SEC) intends to drop its investigation into stablecoin issuer Paxos and not file an enforcement case.

According to a July 9 letter by Jorge Tenreiro, acting chief of the crypto assets and cyber unit, the SEC will not recommend an enforcement action against Paxos over the Binance USD (BUSD) token. In February 2023, Paxos received an SEC Wells notice claiming that BUSD was an unregistered security and that the platform violated federal securities laws.

“Paxos Trust Company has always maintained that its USD-backed stablecoins are not securities under federal securities laws and that the Wells Notice was unwarranted and unjustified,” said Paxos in a July 11 statement. “We are proud of our relentless advocacy for stable-value digital assets and that the SEC staff determined it will not bring enforcement action against Paxos in connection with BUSD.”July 9 letter from SEC to Paxos. Source: Paxos

This is a developing story, and further information will be added as it becomes available.# Law# Security# SEC# United States# Paxos# Regulation# Binance USDAdd reaction