SEC Ends Paxos Investigation, Declares BUSD Not a Security: Fortune, July 11

Jul 12, 2024, 05:31 AM

The U.S. Securities and Exchange Commission (SEC) has officially ended its investigation into Paxos Trust Company regarding its Binance USD (BUSD) stablecoin, declaring that BUSD is not a security. This decision comes more than a year after Paxos received a Wells notice from the SEC in February 2023, indicating potential legal action. The termination of the investigation is seen as a significant win for the crypto industry, as it suggests that USD-backed stablecoins may not be treated as securities under current guidelines. Paxos received a formal letter from the SEC confirming that no enforcement action would be taken. The conclusion of this investigation, reported by Fortune on July 11, marks a pivotal moment for regulatory clarity in the cryptocurrency sector.