ChainCatcher reported that according to Fortune magazine, the U.S. Securities and Exchange Commission decided to end its investigation into New York-based stablecoin issuer Paxos and determined that BUSD is not a security.
Jorge Tenreiro, acting director of the crypto assets and cyber division, said in a letter to Fortune on July 9 that he had no intention of recommending an enforcement action. This comes more than a year after the SEC sent Paxos a Wells Notice, or notice of impending enforcement action, over its U.S. dollar-backed BUSD stablecoin, which it issued in partnership with Binance.
“The official closure of this investigation is a huge relief for us,” Walter Hessert, Paxos’ head of strategy, said in an interview. “It’s what we had been expecting, and it really should create more certainty in the market, and we’re seeing more and more large enterprises coming on board.”
