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SEC Ends Investigation into Paxos Over BUSD

Paxos won't be charged over Binance deal, but they're not totally in the clear yet.

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The Securities Exchange Commission (SEC) does not intend to pursue charges against Paxos Paxos for issuing Binance’s BUSD stablecoin following a 16-month investigation.

What’s the Scoop?

  • Paxos Prevails? BUSD issuer Paxos has received a “formal termination notice” from the SEC, announcing that agency staff will not recommend formal enforcement action against the firm in the Binance Binance case.

Bankless Take:

While SEC enforcement action targeting Paxos specifically is no longer likely in this matter, the provided notice does not rule out potential action from the broader investigation, leaving BUSD’s security designation unknown.

Further, although SEC enforcement action against Paxos was an ongoing concern, it was the New York Department of Financial Services (NYDFS) who ordered Paxos to cease issuing BUSD due to its lack of oversight over the minting process and creation of “Binance-Peg BUSD” not issued by Paxos, rendering the situation in its entirety lamentably unresolved.

 


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In The Article
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Jack Inabinet

Written by Jack Inabinet

419 Articles • View all      

Jack Inabinet is a Senior Analyst with a passion for exploring the bleeding edge of crypto and finance. Prior to joining Bankless, Jack worked as an analyst at HAL Real Estate where he conducted market research and financial analysis for commercial apartment development and acquisition activities in the Seattle region. He graduated from the University of Washington’s Michael G. Foster School of Business.

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