Blockchain Company Paxos Trust ordered to stop issuing Binance USD

• NYDFS has ordered Paxos Trust Co. to stop issuing the BUSD stablecoin.
• This was after the SEC issued a Wells Notice to Paxos.
• The SEC claims that Binance USD is an unregistered security.

Just hours after the U.S. Securities and Exchange Commission (SEC) issued sufficient notice to Paxos, the New York Department of Financial Services (NYDFS) ordered Paxos Trust Co to stabilize Binance USD (BUSD) on its exchange. I asked them to stop issuing coins. it bit.

According to the Wells Notice issued by the SEC, Binance USD is an unregistered security and Paxos has violated investor protection laws by listing and issuing a stablecoin. Firms typically have an opportunity to respond in writing to convince the SEC of why litigation should not continue after the Wells Notice.

Paxos Product Reimbursement Continues

NYDFS has asked Paxos to stop creating more BUSD, but Binance has issued a statement that Paxos will continue to control product redemptions.

Last week, the SEC ruled that cryptocurrency staking violated securities laws and cryptocurrency exchange Kraken agreed to a $30 million settlement deal to launch its products without first seeking approval. said it was forced to close its staking product. Coinbase, which said the SEC was planning to crack down on cryptocurrency staking, decided to start the fight, Defending Crypto Staking Offerings In court if necessary.

Securities controversy within the cryptocurrency industry has been around for several years and has been in the spotlight since the US SEC filed a lawsuit against Ripple Labs three years ago, claiming that the Ripple (XRP) token is a security. I have collected. After a U.S. court recently ruled that another token, LBRY Credit (LBC), is not a security, there is speculation that it may rule in favor of Ripple, and the lawsuit is still ongoing. is.