Paxos announced that it has received an official notice of termination from the SEC, which states that the regulator will not initiate enforcement action against Paxos Trust Company regarding its participation in the listing of the Binance USD (BUSD) stablecoin.

“Paxos Trust Company has always maintained that its U.S. dollar-backed stablecoins are not securities under the federal securities laws. We believe that this development will usher in a new wave of adoption of stablecoins by the world's leading enterprises. Well-designed stablecoins with strong consumer protections—such as those issued by Paxos—will transform the financial system for payments, settlements and remittances,” Paxos said in a statement.

Let us recall that last year the SEC sent a Wells notice to crypto infrastructure provider Paxos about its participation in the listing of the Binance USD stablecoin. The SEC later sued Binance, claiming that BUSD, a joint venture between Binance and Paxos Trust Company, was a security.