The United States Securities and Exchange Commission (SEC) has decided to end its inquiry into stablecoin provider Paxos without pursuing any enforcement actions. In a letter dated July 9, Jorge Tenreiro, the acting head of the crypto assets and cyber unit, stated that the SEC will not be taking any enforcement measures against Paxos regarding the Binance USD (BUSD) token. This decision comes after Paxos received a Wells notice from the SEC in February 2023, alleging that BUSD was an unregistered security. Paxos has consistently maintained that their USD-backed stablecoins do not fall under federal securities laws. The SEC's move to drop the investigation comes amidst legal setbacks for the regulator, such as the ruling in SEC v. Ripple that XRP is not a security. Despite ongoing enforcement actions against other crypto companies, the SEC may need to reassess its approach following a Supreme Court ruling that reduces deference to federal agencies in policy interpretation. Read more AI-generated news on: https://app.chaingpt.org/news