Paxos, the blockchain infrastructure platform behind the stablecoin Binance USD (BUSD), just scored a major legal victory! đ Regulators have stopped their investigation into Paxos regarding dollar-held tokens. This news brings a breath of fresh air to the crypto world, which is often shrouded in thick fog regarding the legal classification and regulatory treatment of stablecoins.
Paxos manages to beat the SEC! After initiating an investigation into BUSD in February 2023, the SEC sent an official cease notice to Paxos on July 9, stating it would not pursue enforcement action.
"We believe this development will open a new wave of stablecoin adoption by leading global companies," Paxos wrote in a press release Thursday.
Stablecoins are blockchain-based tokens whose value is held to assets that are relatively stable in price. BUSD was the third largest stablecoin at the time after Tether (USDT) and Circle USD (USDC), and quickly gained market share thanks to Binance's efforts to build liquidity around it.
The results of the SEC's investigation into Paxos and BUSD have major implications for crypto in general. Both USDT and USDC operate very similarly to the way BUSD functions, meaning a court ruling that BUSD is an unregistered security could doom Tether and Circle to the same fate.
What do you think about this win? Come on, discuss it in the comments column! đŹ
