The SEC has concluded its investigation into Paxos, the issuer of the BUSD stablecoin, deciding not to pursue enforcement actions. This decision ends a regulatory review that began in February 2023 by the SEC and NYDFS.
The NYDFS had earlier classified BUSD as a security, prompting Paxos to halt its issuance. Despite these challenges, Paxos continued to support BUSD withdrawals and conversions, maintaining a market cap of $69.5 million.
Meanwhile, Binance settled with U.S. authorities, agreeing to a $4.3 billion fine and delisting BUSD. Paxos reiterated that its stablecoins are not securities and welcomed the SEC’s decision.
Former CFTC Chairman Christopher Giancarlo joined Paxos’ board, signaling the company’s commitment to navigating regulatory complexities. This development could mark a more balanced regulatory approach to stablecoins and digital assets, fostering innovation while ensuring compliance.
