The SEC has announced its decision to end its investigation into Paxos, the issuer of stablecoins, and will not pursue any enforcement action against them.
This comes after a letter from Jorge Tenreiro, the acting chief of the crypto assets and cyber unit, stated that the SEC will not recommend any action against Paxos for their Binance USD (BUSD) token.
This decision follows a February 2023 SEC Wells notice received by Paxos that claimed BUSD was an unregistered security and violated federal securities laws.
Paxos has maintained that their USD-backed stablecoins do not fall under federal securities laws and have been advocating for stable-value digital assets. The company stated that they are pleased with the SEC staff’s decision to not take any enforcement action against Paxos in regards to BUSD.
