Prohibited From Printing The New BUSD, Paxos Talks With The SEC

JAKARTA - Paxos Trust Company, a major blockchain infrastructure platform, has held discussions with the US Securities and Exchange Commission (SEC) regarding the Binance BUSD stablecoin, according to a Reuters report released on Tuesday, February 21. The company previously received a notification from New York authorities to stop printing BUSD.

Charles Cascarilla, CEO of Paxos, notified his company's employees by email on February 18 that the company had "constructive discussions" with the SEC. In February, Paxos received a Wells notification from an American regulator alleging that the company was selling unregistered securities, suggesting that Binance-branded BUSD was a security.

Furthermore, Cascarilla stated that Paxos wanted to continue discussions with the Securities and Exchange Commission privately and revealed that the company is ready to maintain its stance that BUSD is not a security issue if needed.

The Department of New York Financial Services (NYDFS) also ordered Paxos to stop issuing Binance stablecoins from February 21, but the blockchain platform said it would continue to support BUSD until 2024.

It is important to note that US securities regulators have targeted various cryptocurrency services suspected of being unregistered securities. An example is the Kraken staking service that veteran exchanges had to stop earlier this year.

Despite rumors that the next target is Coinbase for offering similar staking services, the company's executives have clarified on several occasions that this is not a problem to worry about.