Will Paxos Sue Binance for violating investor protection laws?

Paxos ends Binance relationship for BUSD stablecoin after NY regulator action. Paxos and Binance have assured investors that their funds are safe and redeemable. The SEC is reportedly planning to sue Paxos for violating investor protection laws. NY action against Paxos follows last week's SEC settlement with the Kraken exchange.

Will the SEC Sue Paxos?

Paxos also faces a probe from the New York Department of Financial Services. The U.S. Securities and Exchange Commission (SEC) intends to sue stablecoin issuer Paxos, which is behind the Pax dollar (USDP) and Binance USD (BUSD) tokens, over the latter stablecoin, the Wall Street Journal reported Sunday.

Did Paxos stop minting Binance USD?

An SEC spokesperson declined to comment. Paxos declined to comment beyond the email. The New York Department of Financial Services (NYDFS) said in a consumer alert on Feb. 13 that it had ordered Paxos to stop minting Binance USD, the third biggest stablecoin with about $16 billion in circulation.

Should Binance's stablecoin be registered as a security?

Feb 21 (Reuters) - The firm behind Binance's stablecoin, Paxos Trust Company, is in discussions with the U.S. Securities and Exchange Commission after the regulator told the company it should have registered the token as a security, according to an internal email from Paxos' chief executive officer.