Breaking: Paxos CEO Offers to Defend Binance USD ($BUSD) in Court
Paxos Binance USD News: A recent development in the Binance USD episode is that Paxos CEO Charles Cascarilla appears to be actively engaging with the U.S Securities and Exchange Commission. This is in response to the recent restrictions placed on the issuance and use of the stablecoin. Recently, the New York Department of Financial Services ordered Paxos not to issue BUSD. The company stated that it disagreed with the SEC’s view that BUSD was not a security as defined by Federal securities law. Cascarilla maintained the same argument and stated in an internal communication that it would defend its position in court that BUSD was not a security through litigation.
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According to Reuters, a recent email from Paxos CEO to employees stated that the company was engaged in constructive talks with the SEC. It is unclear what sort of conclusion the parties will reach from these discussions. Cascarilla was quoted as saying in the report.
“We are having constructive discussions with SEC. Paxos will defend its position that Binance USD does not constitute security through litigation if necessary.”
CZ, Binance CEO, felt that it was time for stablecoins to be backed by non-US Dollar fiat currencies due to the US regulators’ restrictive attitude toward stablecoins.
Continue reading: Binance’s CZ Supports This Stablecoin After the BUSD Fall
Moreover, the question of whether cryptocurrencies can be considered securities has been a long-running debate in the United States. The SEC’s views on XRP’s credentials are well-known.
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