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BUSD Issuer Paxos Faces SEC Lawsuit Over Binance Stablecoin

Published 13/02/2023, 08:48
BUSD Issuer Paxos Faces SEC Lawsuit Over Binance Stablecoin

  • The Securities and Exchange Commission is reportedly planning to sue crypto firm Paxos.

  • The enforcement action revolves around Binance’s BUSD stablecoin which is issued by Paxos.

  • The regulator has alleged that BUSD is an unregistered security.

Paxos Trust Company, the issuer of the world’s third-largest stablecoin, is reportedly facing a lawsuit from the Securities and Exchange Commission (SEC). According to a recent report, the crypto firm is being accused of violating investor protection laws over Binance’s BUSD stablecoin.

People familiar with the matter revealed that the SEC’s enforcement department has issued a Wells notice to Paxos. A Wells notice is issued to inform entities of potential enforcement action. The notice alleged that BUSD is an unregistered security.

The BUSD stablecoin was launched by Binance and Paxos in 2019. The stablecoin is owned and issued by Paxos, while the exchange licenses its brand. The dollar-pegged stablecoin is listed by Paxos in several crypto exchanges, including its itBit exchange. BUSD has a market capitalization of over $16 billion.

Data from blockchain analytics firm Nansen shows that nearly 90% of the s…

The post BUSD Issuer Paxos Faces SEC Lawsuit Over Binance Stablecoin appeared first on Coin Edition.

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