Facing Binance and its BUSD, Paxos defends its interests with the SEC

Around a tablePaxos discusses with the SEC for attempt to resolve the dispute which opposes it to the regulator, concerning the status of Binance USD (BUSD). The company has therefore not ruled out the option ” talks “, although she has already said that she is ready to fight, in response to this offensive of the agency.


Paxos talks to the SEC to defend its position on Binance USD

In a February 18 email sent to employees of Paxos and consulted by Reuters, the company’s CEO, Charles Cascarilla, said his company was committed ” in constructive discussions with the SEC “.

The regulator had sent a Wells notice to the company, after the agency considered Binance USD to be a security not registered. Paxos had already mentioned his ” categorical disagreement with SEC staff “.

In the email, he reiterated that the company was ready to engage in ” vigorous litigation if needed, to defend his position that BUSD is not a security.

Paxos is in talks with the SEC, after the regulator sent it a Wells notice, accusing it of issuing BUSD, which is said to be an unregistered security.
Security or no security, that is the question: the SEC and Paxos are in talks regarding the status of Binance USD (BUSD)

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Paxos and Binance: separated by the SEC

In addition to these statements about the actions Paxos has taken or is about to take with respect to the SEC, Charles Cascarilla also talked about the company’s relationship with Binance. The company is said to have terminated the collaboration with the crypto exchange, because “ the market has evolved and the relationship with Binance no longer aligns with our current strategic priorities “.

In other words, the onslaught of US regulators – the SEC and the New York Department of Financial Services – against BUSD, would therefore not be the main cause of breakup between Paxos and the crypto exchange.

Binance and Paxos continue to support BUSD in circulation

Although Paxos will no longer issue new BUSD and has therefore terminated its relationship with Binance, the company had indicated that the stablecoins in circulation are “ fully guaranteed and repayable by Paxos Trust Company until at least February 2024 “.

Shortly after announcing the halt to new BUSD issuance, Binance CEO Changpeng Zhao also clarified that Paxos would continue to run services related to the stablecoin and manage your takeover. Besides, the crypto exchange will maintain its support for Binance USD.

The outcome of Paxos’ talks with the SEC may or may not allay crypto players’ fears about tougher crypto regulations in the United States. PayPal has suspended its cooperation with Paxos on a stablecoin projectbecause of the legal storm that shook the company.

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