Paxos ‘categorically disagrees’ with the SEC that BUSD is a security

Paxos Trust Company has released a connection noting that it "categorically disagrees" with the United States securities regulator which has painted Binance USD (BUSD) arsenic a security. 

In the Feb. 13 statement, the BUSD issuer confirmed caller reports that it had received a Wells announcement from the United States Securities and Exchange Commission (SEC) implicit BUSD and its alleged nonaccomplishment to registry the offering nether national securities laws.

END/ Paxos remains dedicated to the improvement of stablecoins, tokenization & #blockchain technology. We’ll proceed serving the world’s astir respected and established companies to make a much unfastened fiscal system.

"Paxos categorically disagrees with the SEC unit due to the fact that BUSD is not a information nether the national securities laws," Paxos said.

The steadfast noted it had received the announcement connected Feb. 3, adding that "there are unequivocally nary different allegations against Paxos."

"We volition prosecute with the SEC unit connected this contented and are prepared to vigorously litigate if necessary," it added.

On Feb. 13, New York Department of Financial Services (NYDFS) ordered Paxos to halt the issuance of BUSD.

Following the order, Paxos announced successful a Feb. 13 Twitter post it volition halt minting caller BUSD tokens effectual Feb. 21.

3/ Paxos volition proceed to negociate each outstanding BUSD reserves, ensuring each BUSD are ever backed 1:1 with US dollar-denominated reserves held successful bankruptcy distant accounts.

However, Paxos has said BUSD volition stay afloat supported and redeemable to onboarded customers done astatine slightest February 2024.

"New and existing Paxos customers volition beryllium capable to redeem their funds successful US dollars oregon person their BUSD tokens to Pax Dollar (USDP), a regulated US dollar-backed stablecoin besides issued by Paxos Trust," Paxos said.

Related: SEC suit against Paxos implicit BUSD baffles crypto community

New York State's Department of Financial Services, oregon NYDFS, reportedly received a complaint from stablecoin issuer Circle regarding Binance's reserves anterior to its crackdown connected BUSD.

Binance CEO Changpeng "CZ" Zhao says the speech volition continue to enactment BUSD contempt issuer Paxos being ordered to halt minting the stablecoin by the U.S. SEC and New York regulators.