Paxos Statement: BUSD is not a security! Will sue SEC if necessary
According to a press release from Paxos, the issuer of the Binance USD (BUSD) stablecoin, they confirmed receiving a Wells Notice from the SEC on 2/3, indicating that the SEC is considering taking action, alleging that BUSD is a security and Paxos should register the issuance of BUSD under federal securities laws.
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According to a press release from Paxos, the issuer of the stablecoin BUSD, Paxos confirmed that it received a Wells Notice from the SEC on 2/3, indicating that the SEC is considering taking action, alleging that BUSD is a security and that Paxos should register the issuance of BUSD under federal securities laws.
In response, Paxos stated:
“Paxos strongly disagrees with the SEC's position, as BUSD is not a security subject to federal securities laws. The Wells Notice in question pertains to BUSD and does not contain any other allegations against Paxos. Paxos has always prioritized the security of customer assets, and the BUSD issued is fully backed 1:1 by US dollars and held in segregated accounts with bankruptcy protection. We will engage with the SEC staff on this issue and are prepared to litigate if necessary.”
For the full news report on BUSD, please see: BUSD Event Summary | Is the Stablecoin a Security? Regulatory demand to cease issuance? Binance's Zhao Changpeng responds? Is there a relationship with USDC?