According to multiple reports, the US Securities and Exchange Commission (SEC) is suspending its investigation into stablecoin publisher Paxos.
According to Fortune, the SEC’s decision to no longer prosecute Paxos over its BUSD stablecoin marks a victory for the crypto industry, indicating that the regulator no longer considers stablecoins as securities.
According to an announcement from Binance, the positive news should be taken with a grain of salt.
“This decision marks an important development in the ongoing discussions surrounding the classification of digital assets.
The SEC’s decision to drop its investigation into PAXOS and its ruling on BUSD could potentially influence future regulatory decisions regarding other digital assets.
However, it is important to note that the SEC’s decisions are subject to change and do not necessarily set a precedent for future cases.”
The regulator’s decision to halt the investigation comes more than a year after Paxos received a Wells Notice, a letter indicating the SEC’s intention to investigate.
In a February 2023 statement, Paxos said it had received a “Wells Notice” from the SEC as the regulator was considering “recommending an action asserting that BUSD is a security and that Paxos should have registered BUSD’s offering under the federal securities laws. ”
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