The Paxos Trust company, the issuer of Binance’s stablecoin BUSD, is still in dispute with the US Security and Exchange Commission (SEC) on Stablecoin minting restriction as per the Paxos CEO and founder Charles Cascarilla’s internal email.
On 13 February, the New York Department of Financial Services (NYDFS) strictly ordered the firm behind BUSD minting to stop issuing more stablecoins. Paxos had agreed to hold issuing Binance’s stablecoins from 21 Feb.
Although, Paxos Trust argued with the Security and Exchange Commission (SEC) later the restriction that Binance stablecoins are not a security under the Federal security law.
Reuters covered a recent email from an employee from the Paxos CEO stating, “We are engaged in constructive discussion with the SEC, and we look forward to continuing that dialogue in private.” Likewise, Cascarilla sticks to this as an internal message, saying the company would use legal action to defend its claim that the BUSD is not a security.
