SEC To Sue Paxos for Listing Binance USD Stablecoin as An Unregistered Security

Key Points: According to the Wall Street Journal, which cites unidentified sources, Paxos is being sued by the SEC for listing the BUSD stablecoin. Paxos claims it is an unregistered security.
Binance states that BUSD is issued by Paxos and is owned by the company. The company licenses its trademark.
According to the Wall Street Journal the Securities and Exchange Commission is planning to sue Paxos over listing the Binance USD currency. The agency’s enforcement staff sent Paxos a Wells Notice, also known as a Wells notice. This is used by the agency to notify individuals and corporations of a possible enforcement action. The notice claims that Binance USD, a digital currency that Paxos lists and issues, is an unregistered security. The SEC has increased its crypto enforcement against large market participants. Payward Inc.’s Kraken platform pleaded guilty last week to stopping the provision of crypto staking services in the United States. It also agreed to pay $30 million in penalties to the SEC. Staking allows investors to make a profit by temporarily transferring their crypto tokens into an intermediary or to a cryptocurrency network. The SEC has never taken any enforcement action against major stablecoin issuers. The government increased its special enforcement section for the crypto industry last year and stated that stablecoins would be the focus. Binance and Paxos have announced a partnership to deploy it in 2019. ItBit, Paxos’ digital asset exchange, also lists BUSD. BUSD can also be found on other exchanges. According to Binance, BUSD was issued and is owned by Paxos. The company licenses its trademark.
We will continue to monitor the situation
Binance stated that the SEC has taken enforcement action against dozens digital tokens over the past six years. Binance stated that the agency had taken enforcement action against dozens of digital tokens over the past six years. We encourage you to do your research before investing.Join us to keep track of news: NewsTags: #PaxosPaxospaxos. Standard coinsSECSEC chairmanSECsSecurities and Exchange CommissionSecurities and Exchange CommissionsUS sec