Blockchain infrastructure platform Paxos is engaged in constructive discussions with the SEC regarding the Binance stablecoin(BUSD), and is ending the relationship with Binance, according to Paxos CEO & Co-Founder Charles Cascarilla.
In a latest development in the Binance USD (BUSD) episode, Charles Cascarilla shared his thoughts in a press release.
"We are engaged in constructive discussions with the SEC, and we look forward to continuing that dialogue in private. " Cascarilla said in the statement. "Of course, if necessary, we will defend our position in litigation. We will share more information when we can. "
Cascarilla also stated that Paxos is ending the relationship with Binance. However, Paxos clarified that the decison was separate from the Wells Notice and the DFS directive.
Paxos received a Wells notice from the SEC on February 3, 2023. The Wells notice states that the staff of the SEC is considering recommending an action alleging that BUSD is a security and that Paxos should have registered the offering of BUSD under the federal securities laws.
Cascarilla said the decision is beccause "the Binance relationship no longer aligns with our current strategic priorities" in the evolving market, and he believes this decision best positions Paxos to achieve their mission.
The statement highlights that the suspension of the minting of BUSD has not caused significant market disruptions, with over $2.8 billion worth of BUSD redeemed since the announcement. The focus of Paxos remains on serving BUSD end-holders and protecting them from harm.
Paxos also announces that it will continue supporting BUSD through at least February 2024, while upholding the highest security and soundness standards in the stablecoin market.
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