The issuer of Binance's stablecoin BUSD, Paxos, has received a notice from the SEC that it has no enforcement action plans.
In February 2023, NYDFS initiated an investigation into the firm. The regulator later ordered Paxos to stop issuing BUSD.
The SEC also announced its readiness to sue the latter. The Commission's notice argued that the digital asset was a security, which the company "strongly disagreed with."
In June 2023, the regulator filed 13-point claims against Binance and its founder Changpeng Zhao. One of them involved allegations of an unregistered BUSD proposal.
Paxos continued to support stablecoin redemption and conversion operations until February 2024.
According to CoinGecko, $69 million worth of BUSD remains in circulation. Over the past 24 hours, the asset turnover amounted to $992,000.
In June 2024, Judge Amy Berman Jackson partially dismissed the SEC's lawsuit against Binance. In particular, it granted the exchange’s request to withdraw the claims of the BUSD proposal.
In April, a bill on payment stablecoins was introduced into the Senate.
The document bans unbacked algorithmic “stable coins” and introduces an anti-money laundering mechanism. It obliges issuing firms to create reserves of cash and cash equivalents in a one-to-one ratio to secure tokens.
