The US Securities and Exchange Commission (SEC) sent a Wells notice to stablecoin issuer Paxos arguing that Binance USD (BUSD) may have violated securities laws.
According to The Wall Street Journal’s (WSJ) report on Feb. 12, sources familiar with the subject said that the SEC told Paxos. of BUSD whether it violates securities laws Wells statement He said he sent it.
by the SEC upon receipt of any defendant’s Wells notice. not to be sued for the relevant your justification and against the law that you didn’t come There are then 30 days for his defense.
According to the information received, the SEC an unregistered security claimed to be. of Paxos has exported and the stablecoin BUSD, which Binance has licensed on behalf of the exchange for use, 16 billion Cryptocurrency market with dollar market cap the biggest It exists as one of its stablecoins.
Binance, BUSD that Paxos exports and owns status when stating that it is licensed only by Binance follow-up announced that they will continue to do so. There was no statement from Paxos and the SEC on the subject.
Adam Cochran, a well-known investor in the cryptocurrency markets in a statement madewhether or not BUSD is a security only Howey’s test or to earn profit connected not expressed.
Howey test can be used as a basis in this regard. precedent decisions but the definition of securities is much more wide Cochran, who said that it covers a range of stablecoin reserves, cash equivalents that this situation makes them securities if they are not even to securities that you exposed expressed. Investor SEC’s stablecoins money market fund while saying that he can categorize them as securities to the formation will not affect also emphasized.