Paxos Is Holding a 'Constructive Discussion' With SEC: Reuters
Stablecoin issuer Paxos is having a "constructive discussion" with the U.S. Securities and Exchange Commission (SEC), Chief Executive Officer Charles Cascarilla told the company over the weekend, according to Reuters.
The report, which was light on detail, comes a week after Paxos acknowledged receiving a Wells Notice from the SEC. A Wells Notice is a tool used by the SEC to allege certain activity may be a violation of federal securities law, and may indicate the SEC intends to sue.
Paxos' notice was tied to the company's issuance of Binance USD (BUSD), a branded stablecoin product. The Pax Dollar (USDP), the company's own stablecoin product, was not included in the notice.
Paxos has already announced it will stop issuing BUSD after receiving a notice from the New York Department of Financial Services, the state regulator overseeing it.
The SEC has been accelerating its crackdown on crypto companies the agency believes are violating federal law. In the last few weeks, it's settled charges that Kraken's staking services product was an unregistered securities offering; settled charges with NBA Hall of Famer Paul Pierce alleging he didn't disclose being paid to promote a token; and sued Gemini, Genesis and Terraform Labs (Genesis and CoinDesk share a parent company in Digital Currency Group).
See also: The SEC Is Taking Aim at Paxos and (Annoyingly) It’s Good for Bitcoin