- Paxos’s USDP stablecoin is not subject to SEC oversight.
- U.S SEC to Charge Paxos firm over Binance stablecoin.
- The Securities Exchange Commission sent a Wells notice to Paxos company.
Paxos Co., the issuer of the Binance USD (BUSD) stablecoin, has recently been embroiled in a legal battle with the Securities and Exchange Commission (SEC), with the SEC accusing the firm of violating regulations designed to protect investors, prompting the SEC to take such drastic measures.
According to a recent tweet by CryptoNewsLand, despite the charges that the SEC has brought against the company based in New York, Paxos’ own stablecoin has not been included in the investigation into the company’s activities.
As per the reports that were published by the Wall Street Journal (WSJ), the Securities and Exchange Commission (SEC) sent a letter that is known as a “Wells notice.” This letter is used by the organization to send warnings and notify individuals and companies regarding potential enforcement actions brought by the SEC.
Since the collapse of the FTX crypto exchange platform, whose CEO, Sam-Bankman Fried (SBF), was accused of misusing customer funds, the US crypto industry hasn’t been the same. This is because the SEC has been on a mission to step up their efforts to monitor the cryptocurrency ecosystem as a whole. Per the recent reports, the SEC and Kraken reached an agreement regarding charges related to Kraken’s “staking-as-a-service” offering.
In a related report, the SEC has just ordered Paxos to stop issuing Binance Stablecoin. However, according to the report, Binance, which had partnered with Paxos Trust Co., stated that Paxos will continue to manage product redemptions.
