Paxos said it “strongly disagrees” with the US Securities and Exchange Commission (SEC) in calling Binance USD (BUSD) a security.
The stablecoin issuer said it received a notification from SEC Wells regarding BUSD after the regulator accused Paxos of issuing an unregistered stablecoin.
“We will cooperate with SEC officials on this issue and stand ready to take serious action if necessary,” the company said in a statement. “To be clear No other allegations have been made against Paxos yet.”
Paxos willStop exiting BUSD According to orders from the New York Department of Financial Services
“Paxos has always prioritized the safety of its clients’ assets,” the company said. “The BUSD issued by Paxos is always backed 1:1 with US dollar reserves. fully separated and stored in bankruptcy remote accounts.”
Paxo will stop issuing new stablecoins BUSD from February 21, but will allow BUSD to be redeemed until at least February 2024, according to the company.say
“BUSD is a stablecoin owned and managed by Paxos, so the market cap of BUSD will only decrease over time,” a spokesperson for Binance previously said. “Paxos will continue to offer the product. including managing the redemption and will follow up with additional information as needed.”
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