According to a Reuters report, major blockchain infrastructure platform Paxos Trust Company is in talks with the US Securities and Exchange Commission (SEC) about Binance stablecoin BUSD. Authorities in New York had already given the business notice to stop minting BUSD.
Charles Cascarilla, CEO of Paxos, informed the company’s staff via email on February 18 that the company is having “constructive discussions” with the SEC, according to Reuters on Tuesday (Feb. 21, 2022).
The Binance-branded BUSD was a security, according to a Wells notice that Paxos received from the American regulator earlier in February, saying that the company was selling unregistered securities.
Cascarilla added that Paxos was prepared to defend its position that BUSD was not a security if necessary and that the company was eager to continue its private negotiations with the Securities and Exchange Commission.
The New York Department of Financial Services (NYDFS) also ordered Paxos to stop issuing the Binance stablecoin on February 21, despite the blockchain platform’s stated support for BUSD until 2024.
It’s worth mentioning that the US Securities and Exchange Commission has been on the lookout for various cryptocurrency services that it believes may be unregistered securities. This was the situation with Kraken’s staking services, which had to be discontinued earlier this year.
According to speculations, the SEC’s next target could be Coinbase, which provides similar staking services. However, executives at the company insisted on multiple occasions that this was not the case.
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