Paxos Settles With SEC Over Binance USD Stablecoin, Unlocking New Wave of Adoption
- WBOYOriginal
- 2024-07-18 08:40:54336browse
Paxos, the regulated blockchain & tokenization infrastructure platform, announced that it received a formal termination notice from the US Securities
Paxos, a blockchain infrastructure and tokenization platform, announced on Monday that the US Securities and Exchange Commission (SEC) has notified the firm that it will “not recommend enforcement action against Paxos Trust Company in the investigation of Binance USD (BUSD).”
The SEC reportedly sent a formal termination notice to Paxos on July 9.
Paxos stated in a press release that the SEC investigation began in April 2023 with a Wells Notice, which typically precedes an enforcement action by the agency. However, the SEC ultimately decided not to proceed with enforcement action against Paxos.
The company said:
Paxos Trust Company has always maintained that its USD-backed stablecoins are not securities under federal securities laws and that the Wells Notice was unwarranted and unjustified. We are proud of our relentless advocacy for stable-value digital assets and that the SEC staff determined it will not bring enforcement action against Paxos in connection with BUSD.
Paxos went on to express optimism that the SEC’s decision will “drive a new wave of stablecoin adoption by leading global enterprises.” The company added:
Well-designed stablecoins with strong consumer protections – like those issued by Paxos – will transform the financial system in payments, settlement and remittance use cases. This transformative technology will make the financial system more stable, accessible and transparent.
Moreover, Paxos highlighted the safety of customer assets, which the company said it has always prioritized.
“Paxos-issued stablecoins are always backed 1:1 with U.S. dollar-denominated reserves, fully segregated and held in bankruptcy remote accounts,” the announcement detailed, adding:
Paxos stands apart as the only issuer to secure regulatory oversight in order to introduce safe solutions that will drive significant innovation across the global financial system.
As previously reported by Cryptonews, Paxos is a regulated blockchain infrastructure and tokenization platform. Its products are said to be “the foundation for a new, open financial system that can operate faster and more efficiently.”
According to the company, today trillions of dollars are locked “in inefficient, outdated financial plumbing that is inaccessible to millions of people.” Paxos claims that it is replatforming the financial system “to enable assets to instantaneously move anywhere in the world, at any time, in a trustworthy way.”
Paxos partners with global enterprises “to tokenize, custody and trade assets. Its blockchain solutions are used by leaders like PayPal, Interactive Brokers, Mastercard, Mercado Libre and Nubank. It is the issuer of numerous regulated digital assets including PayPal USD (PYUSD), Pax Dollar (USDP) and Pax Gold (PAXG).”
Its affiliate company Paxos International “issues the yield-bearing regulated stablecoin Lift Dollar (USDL).”
Prudentially regulated by the NYDFS in the U.S., the MAS in Singapore and FSRA in Abu Dhabi Global Market, Paxos is a fintech company “with more than $540 million raised from leading investors including Oak HC/FT, Declaration Partners, Founders Fund, Mithril Capital and PayPal Ventures.”
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