Investing.com - Financial Markets Worldwide
⛔ Stop guessing ⛔ Use our free stock screener to find new opportunities fast Try Free Screener

BUSD Issuer Paxos Faces SEC Lawsuit Over Binance Stablecoin

Published 2023-02-13, 02:48 a/m
© Reuters. BUSD Issuer Paxos Faces SEC Lawsuit Over Binance Stablecoin

Coin Edition -

  • The Securities and Exchange Commission is reportedly planning to sue crypto firm Paxos.

  • The enforcement action revolves around Binance’s BUSD stablecoin which is issued by Paxos.

  • The regulator has alleged that BUSD is an unregistered security.

Paxos Trust Company, the issuer of the world’s third-largest stablecoin, is reportedly facing a lawsuit from the Securities and Exchange Commission (SEC). According to a recent report, the crypto firm is being accused of violating investor protection laws over Binance’s BUSD stablecoin.

People familiar with the matter revealed that the SEC’s enforcement department has issued a Wells notice to Paxos. A Wells notice is issued to inform entities of potential enforcement action. The notice alleged that BUSD is an unregistered security.

The BUSD stablecoin was launched by Binance and Paxos in 2019. The stablecoin is owned and issued by Paxos, while the exchange licenses its brand. The dollar-pegged stablecoin is listed by Paxos in several crypto exchanges, including its itBit exchange. BUSD has a market capitalization of over $16 billion.

Data from blockchain analytics firm Nansen shows that nearly 90% of the s…

The post BUSD Issuer Paxos Faces SEC Lawsuit Over Binance Stablecoin appeared first on Coin Edition.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.