2 years ago
Paxos published a missive from its CEO, Charles Cascarilla, connected Feb. 21 successful which the enforcement discussed the company’s ill-fated BUSD stablecoin.
On Feb. 13, enactment from New York regulators led Paxos to halt issuing its Binance USD (BUSD) stablecoin. Though Paxos did so, the U.S. Securities and Exchange Commission separately issued a Wells Notice prospectively alleging that BUSD is simply a security.
The institution has contested the second assertion. Cascarilla wrote today:
“Under [the Howey and Reves tests], BUSD does not conscionable the criteria to beryllium a security. Our stablecoins are ever backed by currency and equivalents–dollars and US Treasury bills, but ne'er securities.”
While the Howey Test defines galore concern contracts arsenic a security, the Reves trial uses a “family resemblance” trial to find whether an plus is simply a security. As such, Paxos aims to disprove that BUSD is simply a information successful a precise wide sense.
Cascarilla said that Paxos is progressive successful “constructive discussions” with the U.S. Securities and Exchange Commission (SEC) connected the substance and that these discussions hap privately. He said that the steadfast volition stock much accusation erstwhile it is imaginable to do.
He besides said that Paxos whitethorn “defend [its] presumption successful litigation,” echoing earlier statements successful which the institution said it volition “vigorously litigate if necessary.” If Paxos follows done and defends itself successful court, it volition go 1 of conscionable a fewer different high-profile crypto projects — including Ripple, LBRY, Telegram, and Kin — to situation the SEC.
Cascarilla added that Paxos has facilitated much than $2.8 cardinal successful Binance USD redemptions without disruption successful the cryptocurrency market. Those redemptions proceed from the $300 cardinal of redemptions reported by Crypto Slate connected Feb. 14.
Cascarilla additionally noted that Paxos is engaging with regulators connected different matters. The institution is pursuing an exertion with the Office of the Comptroller of the Currency (OCC) done which it aims to get a slope charter arsenic good arsenic an exertion with the SEC done which it intends to enactment arsenic a clearing agency.
Today’s missive from Paxos is simply a nationalist mentation of a missive that the steadfast sent to interior employees connected Saturday. Various quality publications quoted the missive successful portion today.
The station Paxos asserts that Binance USD is not a information nether 2 abstracted tests appeared archetypal connected CryptoSlate.
English (US) 