SEC Dropped Investigation Against Coin Issuing Giant Binance: Critical Decision Made!

The SEC's conclusion of the investigation stating that BUSD is not a security brought an unexpected victory to the stablecoin sector, creating relief in the crypto industry.

According to a report by Fortune, the US Securities and Exchange Commission (SEC) has decided to quietly end its investigation into New York-based stablecoin issuer Paxos. In this context, it was decided that BUSD, produced by Binance and Paxos and whose issuance was stopped last year, is not a security.

It was stated that after the Wells notification sent to Paxos for BUSD, the SEC thought that it would not take any sanctions against the company.

This step back by the SEC came just days after it suffered a partial defeat in its lawsuit against Binance.

Paxos' head of strategy, Walter Hessert, made the following statements in his statement on the subject:

It is a great relief for us that this investigation is officially over. This is what we have been waiting for all along and should really create more certainty in the market among increasingly large businesses

New York-based Paxos first launched BUSD in partnership with Binance in September 2019. Although the dollar-backed stablecoin could not surpass its rivals Tether and USDC, it had become one of the leaders in the rapidly developing sector thanks to its role in the Binance ecosystem.

The SEC had previously suffered partial defeats in the Binance and Ripple cases.

Paxos announced on February 13, 2023 that the production of the company's cryptocurrency exchange BUSD would be stopped, according to the decision of the New York Department of Financial Services (NYDFS).