Paxos Talks With SEC Amid Regulatory Crackdown On Stablecoins
• Paxos, the issuer of Binance’s BUSD stablecoin, is in ongoing discussions with the Securities Exchange Commission (SEC) following a regulatory crackdown on this industry.
• Paxos has stopped minting BUSD tokens after an order from the New York State Department of Financial Services (NYDFS).
• The SEC is questioning whether stablecoins are securities under their jurisdiction and if so, other stablecoins would have the same label.
Paxos In Discussion With SEC Following Regulatory Crackdown
According to a Reuters report, Paxos, the first regulated blockchain infrastructure platform behind Binance’s stablecoin BUSD, is in ongoing discussions with the Securities Exchange Commission (SEC) following the regulatory crackdown on this industry. According to the report, Paxos CEO Charles Cascarilla said in an email sent Saturday that the company is in ongoing “constructive conversations” with the SEC. The talks began following the SEC’s lawsuit, which alleges that the Binance branded stablecoin is unregistered security in U.S. jurisdiction.
Paxos Halts Minting Of BUSD Tokens After Order From NYDFS
Paxos has stopped minting new BUSD tokens and will work in coordination with the NYDFS. Paxos said it would also “terminate its relationship” with the largest crypto exchange, Binance, following the SEC and NYDFS investigations. BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? 570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day only at Wild.io Play Now!
BUSD Is A StableCoin Associated With The Crypto Exchange
BUSD is a stablecoin associated with cryptocurrency exchange Binance. It aims to provide a more stable alternative for traders and investors looking to avoid volatility of digital asset market each token being pegged one-to-one to US dollar held in reserve.
SEC Questions Whether Stablecoins Are Securities Under Their Jurisdiction
The notice issued by New York Financial Services department questions whether or not these coins are securities under US watchdogs jurisdiction if so then other cryptocurrencies would have similar labels for SEC as well however no specific charges have been made yet against them by regulator body thus far .
Paxos Disagrees That Its Token Is Unregistered Security
Paxos has stated that it disagrees with SEC enforcement because “BUSD is not a security under federal securities laws.” On the other hand Townsend Lansing head of product at CoinShares Europe’s largest digital asset investment firm addressed this matter stating that they would defend their position through litigation if need be .