The BUSD & USDP issuer company Paxos is reportedly in talks with the US Securities regulatory body to clear the whole matter about the nature of BUSD stablecoin.
Paxos Trust Company is a New York-based fully licensed stablecoin issuer firm. This company provides BUSD & USDP stablecoin. On 13 Feb 2023, The United States Securities and Exchange Commission (SEC) sent a Wells notice to Paxos over the security nature of BUSD stablecoin and also Paxos was ordered to stop minting new BUSD stablecoin by the New York Department of Financial Services (NYDFS).
On 21 Feb 2023, Reuters reported that Paxos sent an email to the media house and confirmed that the Paxos team is in constructive talks with the US SEC agency to bring clarity on the BUSD stablecoin nature.
Reportedly Paxos stated:
“We are engaged in constructive discussions with the SEC, and we look forward to continuing that dialogue in private.”
Paxos vs SEC vs Binance
Initially when Paxos received Wells notice from the SEC agency then Paxos confirmed that the company did not agree with the SEC’s claims over the nature of BUSD stablecoin and also confirmed that it will talk on this matter with the SEC agency to bring clarity because BUSD stablecoin was always safe for the crypto investors.
Later many reports noted that the whole matter was related to the Binance crypto exchange & Paxos relationship. A few reports claimed that Binance failed to manage BUSD stablecoin on the Binance exchange. While some other media reports noted that there are several unresolved issues with the Binance exchange.
Before any regulatory action on the Paxos company, Binance faced significant problems from the US partners. Because of the regulatory pressure, all the Banks suspended their support from the Binance exchange. These things are showing that Binance will not get any type of support from the US companies because US authorities are not in mood to support non-US licensed crypto companies.