SEC Closes Investigation into BUSD Stablecoin

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Following an investigation into the stablecoin Binance USD, the US Securities and Exchange Commission has announced that it will not recommend an enforcement action against Paxos.

According to a statement from Paxos, the SEC issued a formal termination notice on July 9.

This decision has been hailed by Paxos as a positive development for the adoption of stablecoins by major global enterprises, as well as for the transformation of the financial system in various use cases such as payments, settlement, and remittance, especially when they have strong consumer protections in place.

The SEC had previously issued a notice to Paxos for its involvement in Binance USD, which was later followed by a lawsuit against Binance, with the SEC claiming that BUSD is a security.