U.S. Securities and Exchange Commission ( SEC), Paxosplans to sue the party for violating the law.
While the recovery process is observed in the crypto money market, the legal processes do not stop. After the disasters of the past year, many regulators have seen activity in the new year. One of these regulators, the SEC, is working hard to rally the crypto industry. Finally SEC, Paxos and BUSD got their relationship on their radar . The SEC is preparing to sue Paxos.
SEC Makes Action Plan on BUSD and Paxos
U.S. Securities and Exchange Commission ( SEC), is preparing to sue Paxos for considering it violates investor protection laws.
SECA letter that the agency uses to notify companies and individuals of possible enforcement action. Also sent to Paxos.
In the announcement, of PaxosBinance USD, a stablecoin it issues and lists ( BUSD), allegedly an unregistered security.
Binance and PaxosBUSD, created by the partnership, is pegged to the US dollar at a one-to-one rate. The stablecoin, which was launched in 2019, has now entered the SEC’s radar.
SECAccording to the notice, of PaxosRegarding cryptocurrencies, it could not be determined which of the action plans, such as issuance or listing, is based on.
One Paxos spokesperson, “Paxos does not comment on any individual issue”said.
