Paxos, SEC and ‘constructive discussion’ | coindesk JAPAN | Coindesk Japan

Paxos CEO Charles Cascarilla told employees on February 18 that they are having “constructive discussions” with the SEC (U.S. Securities and Exchange Commission). said in an email to

The SEC has pointed out that its stablecoin, Binance USD (BUSD), may violate federal securities laws. Pax dollars (USDP) issued by the company under its own brand are not included.

Paxos has already announced on the 13th that it will stop issuing BUSD at the request of the New York State Department of Financial Services (NYDFS).

Since introducing BUSD in 2019, “the market has evolved and our relationship with Binance no longer aligns with our current strategic priorities. Cascarilla CEO said in an email.

Since announcing the suspension, the company has facilitated the redemption of more than $2.8 billion in BUSD without causing major market turmoil.

The SEC is accelerating its regulation of cryptocurrency companies it deems to be violating federal law. For example, major exchange Kraken has suspended its staking service after it was accused of offering unregistered securities.

｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
| Image: Paxos CEO Charles Cascarilla (CoinDesk)
｜Original: Paxos Is Holding ‘Constructive Discussions’ With SEC