The Securities and Exchange Commission (SEC) has decided to end its investigation into Paxos, marking a significant win for stablecoin regulation in the US.<\/p>\n
After more than a year since the SEC sent a Wells notice to Paxos regarding the Binance USD (BUSD) stablecoin, the regulator, through Jorge Tenreiro, the acting chief of its crypto assets unit, communicated the decision to drop the probe.<\/p>\n
According to a Fortune report, Walter Hessert, Paxos’ head of strategy, expressed relief at the closure of the investigation, emphasizing the positive impact this decision will have on market certainty.<\/p>\n
Paxos and Binance launched the BUSD stablecoin in September 2019, which despite not overtaking competitors like Tether’s USDT and Circle’s USDC, gained prominence within the Binance ecosystem.<\/p>\n
The SEC had alleged that BUSD should be considered a security under the Howey test, a viewpoint Paxos disagreed with, citing BUSD’s full backing by dollar reserves at a 1:1 ratio.<\/p>\n
Despite a year-long investigation that was active until early July, the SEC’s position changed following a court ruling in favor of Binance on June 28, which determined that BUSD’s sale did not constitute a securities offering, resulting in the dismissal of charges.<\/p>\n
At the time of reporting, Binance’s BNB token was trading at $532, showing a 1% increase in the past 24 hours.<\/p>\n
Image source: DALL-E, chart source: TradingView.com<\/p>\n","protected":false},"excerpt":{"rendered":"
The Securities and Exchange Commission (SEC) has decided to end its investigation into Paxos, marking a significant win for stablecoin regulation in the US. After more than a year since the SEC sent a Wells notice to Paxos regarding the Binance USD (BUSD) stablecoin, the regulator, through Jorge Tenreiro, the acting chief of its crypto […]<\/p>\n","protected":false},"author":1,"featured_media":15522,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"slim_seo":{"title":"SEC Investigation Dropped: BUSD Validated as Non-Security by SEC - Bitrabo","description":"The Securities and Exchange Commission (SEC) has decided to end its investigation into Paxos, marking a significant win for stablecoin regulation in the US. Aft"},"footnotes":""},"categories":[316],"tags":[1044,6005,806,6007,818,4847,6006,1959,520,819,6004],"class_list":["post-15521","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","tag-breaking","tag-busd","tag-drops","tag-non-security-status","tag-nonsecurity","tag-paxos","tag-paxos-probe","tag-probe","tag-sec","tag-status","tag-validates"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/15521","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/comments?post=15521"}],"version-history":[{"count":0,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/15521\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media\/15522"}],"wp:attachment":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media?parent=15521"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/categories?post=15521"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/tags?post=15521"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}