The US Securities and Exchange Commission (SEC) has reportedly informed Paxos that it plans to sue the company. The Binance USD (BUSD) stablecoin was issued as an unregistered security in violation of investor protection laws.
Paxos owns and issues BUSD. It is a secured stablecoin denominated in US dollars. Since the company partnered with Binance in September 2019, BUSD has grown to become the third largest stablecoin. with a current market capitalization of more than $16 billion.
followreportOn Feb. 12 in The Wall Street Journal, citing people familiar with the matter, the SEC issued a notice to Paxos notifying the company of upcoming enforcement action.
It is unclear whether the announcement is related to Paxos issuance or BUSD listing.
Earlier, reports emerged last week that Paxos was being investigated by the New York Department of Financial Services (NYDFS).
Paxos is also the creator of the Paxos Dollar (USDP), launched in 2018.
refer : LINK
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