The US Securities and Exchange Commission (SEC) intends to drop its investigation into stablecoin issuer Paxos and not file an enforcement case.
According to a July 9 letter by Jorge Tenreiro, acting chief of the crypto assets and cyber unit, the SEC will not recommend an enforcement action against Paxos over the Binance USD (BUSD) token. In February 2023, Paxos received an SEC Wells notice claiming that BUSD was an unregistered security and that the platform violated federal securities laws.
“Paxos Trust Company has always maintained that its USD-backed stablecoins are not securities under federal securities laws and that the Wells Notice was unwarranted and unjustified,” said Paxos in a July 11 statement. “We are proud of our relentless advocacy for stable-value digital assets and that the SEC staff determined it will not bring enforcement action against Paxos in connection with BUSD.”
This is a developing story, and further information will be added as it becomes available.