Paxos CEO Charles Cascarilla said in a statement over the weekend, Reuters reported. BUSD said its issuer, Paxos, is having a “constructive negotiation” with the U.S. Securities and Exchange Commission (SEC).
BUSD Distributor Paxos Reports Constructive Progress in Talks With SEC
The non-detailed report comes a week after Paxos acknowledged receiving a Wells Notice from the SEC. The Wells Notice is a tool used by the SEC to argue that certain activities may violate federal securities law and may indicate that the SEC intends to sue.
Paxos’ notice concerned the issuance of Binance USD (BUSD), a self-branded stablecoin product of the company. The company’s own stablecoin product, the Pax Dollar (USDP), was not included in the notice.
Paxos has already announced that it will stop issuing BUSD after receiving a notice from the New York Department of Financial Services, the state regulator that oversees it.
The SEC believes the agency violates federal law. cryptocurrency puts pressure on companies.
In the past few weeks, it has settled accusations that Kraken’s staking services product is an unregistered securities offering. In addition, he settled charges against NBA star Paul Pierce for allegedly failing to disclose that he was paid to advertise a token.
In addition, the regulator also sued Genesis, Gemini and Terra (LUNA) distributor Terraform Labs.
Terraform Labs founder Do Kwon is estimated to have caused at least $40 billion in losses.
*Not investment advice.
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