SEC Ends Investigation into Paxos Over BUSD
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The Securities Exchange Commission (SEC) does not intend to pursue charges against Paxos for issuing Binance’s BUSD stablecoin following a 16-month investigation.
What’s the Scoop?
- Paxos Prevails? BUSD issuer Paxos has received a “formal termination notice” from the SEC, announcing that agency staff will not recommend formal enforcement action against the firm in the Binance case.
Bankless Take:
While SEC enforcement action targeting Paxos specifically is no longer likely in this matter, the provided notice does not rule out potential action from the broader investigation, leaving BUSD’s security designation unknown.
Further, although SEC enforcement action against Paxos was an ongoing concern, it was the New York Department of Financial Services (NYDFS) who ordered Paxos to cease issuing BUSD due to its lack of oversight over the minting process and creation of “Binance-Peg BUSD” not issued by Paxos, rendering the situation in its entirety lamentably unresolved.
“Paxos prevails in SEC investigation of BUSD stablecoin” 👏
— Paxos (@Paxos) July 11, 2024
On Tuesday, we received a formal termination notice from the SEC stating that it will not recommend enforcement action against Paxos Trust Company in the investigation of Binance USD (BUSD).
View the letter and our… pic.twitter.com/8kjysfsPg3