{"id":551265,"date":"2023-02-13T13:53:10","date_gmt":"2023-02-13T10:53:10","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/sec-lawsuit-against-paxos-over-busd-baffles-crypto-community\/"},"modified":"2023-02-13T13:53:10","modified_gmt":"2023-02-13T10:53:10","slug":"sec-lawsuit-against-paxos-over-busd-baffles-crypto-community","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/sec-lawsuit-against-paxos-over-busd-baffles-crypto-community\/","title":{"rendered":"# SEC lawsuit against Paxos over BUSD baffles crypto community"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a34d5a9030a5\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a34d5a9030a5\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/sec-lawsuit-against-paxos-over-busd-baffles-crypto-community\/#%E2%80%9D_SEC_lawsuit_against_Paxos_over_BUSD_baffles_crypto_community_%E2%80%9C\" >&#8221; SEC lawsuit against Paxos over BUSD baffles crypto community &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_SEC_lawsuit_against_Paxos_over_BUSD_baffles_crypto_community_%E2%80%9C\"><\/span>&#8221; SEC lawsuit against Paxos over BUSD baffles crypto community &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDIvNDdiODcwODQtN2Y3Yy00MDExLWI0OWEtOGE2MTVkNTkzYmU3LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-4bbf85c5>Paxos and Binance USD (BUSD) being in the sights of United States regulators sparked various reactions from the crypto community.\u00a0<\/p>\n<p>On Feb. 13, the U.S. Securities and Exchange Commission (SEC) issued a Wells Notice to Paxos, alleging that BUSD is unregistered security. On the same day, the New York Department of Financial Services (NYDFS) also ordered Paxos to halt the issuance of BUSD. <\/p>\n<p>As Paxos faces regulatory scrutiny on several fronts, various members of the crypto community went to <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> to give their takes on the situation. From disregarding the issue as \u201cFUD\u201d to calling it an attack against the Binance exchange, crypto community members laid down various theories on the allegations that BUSD is an unregistered security.<\/p>\n<p>Crypto analyst Miles Deutscher expressed his thoughts in a tweet, arguing that nobody expects profit when purchasing a stablecoin. He tweeted: <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">The SEC has labelled BUSD as an \u201cunregistered security\u201d, and is suing its issuer, Paxos. <\/p>\n<p>But how on earth is a STABLECOIN considered a security, when it clearly doesn\u2019t meet the Howey Test criteria. <\/p>\n<p>No one has ever had \u201cthe expectation of profit\u201d when buying <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24BUSD&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$BUSD<\/a>. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/QXOlDUyvc3\">pic.twitter.com\/QXOlDUyvc3<\/a><\/p>\n<p>\u2014 Miles Deutscher (@milesdeutscher) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/milesdeutscher\/status\/1624953792872718336?ref_src=twsrc%5Etfw\">February 13, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>Similarly, the pseudonymous trader Tree of Alpha was also baffled by the new development. The community member questioned how it was considered a security and asked their followers if they were buying BUSD with the expectation that it will go to $2. In addition, the trader also called out the SEC chairperson Gary Gensler and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/tree_of_alpha\/status\/1625056520068104195\">said<\/a> that the government official is on an \u201cunhinged, unchecked crusade against crypto.\u201d\u00a0<\/p>\n<p>Meanwhile, iTrader AshWSB also commented on the matter and dismissed the issue as \u201cFUD.\u201d The trader argued that BUSD is backed, and Paxos not issuing any more tokens will not affect the existing tokens. &#8220;It&#8217;s good to stay informed but don&#8217;t make emotional moves,&#8221; they warned. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Don\u2019t worry about the BUSD Fud <\/p>\n<p>BUSD not a scam token, <br \/>it\u2019s backed by USD 1:1 <\/p>\n<p>Paxos not issuing any more BUSD<br \/>will not effect the existing BUSD <\/p>\n<p>It\u2019s good to stay informed but don\u2019t <br \/>make emotional moves.<\/p>\n<p>\u2014 Ash WSB (@Ashcryptoreal) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Ashcryptoreal\/status\/1625052190346969088?ref_src=twsrc%5Etfw\">February 13, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Apart from the three, Bitcoin (BTC) analyst Tedtalksmacro also echoed the sentiments that BUSD might not be meeting the criteria for a security. The analyst also <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/tedtalksmacro\/status\/1624934967875887105\">suggested<\/a> that the event may simply be \u201ca shot at Binance.\u201d <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Kraken reaches $30M settlement with SEC over staking as IRS seeks user information<\/em><\/strong><\/p>\n<p>In the midst of the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>, Cointelegraph spoke with several blockchain lawyers to find out if stablecoins can be securities. One lawyer pointed out that while stablecoins are created to have a fixed value, holders can profit through various means like arbitrage, hedging and staking. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/sec-lawsuit-against-paxos-over-busd-baffles-crypto-community\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; SEC lawsuit against Paxos over BUSD baffles crypto community &#8220; Paxos and Binance USD (BUSD) being in the sights of United States regulators sparked various reactions from the crypto community.\u00a0 On Feb. 13, the U.S. Securities and Exchange Commission (SEC) issued a Wells Notice to Paxos, alleging that BUSD is unregistered security. On the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":551266,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/47b87084-7f7c-4011-b49a-8a615d593be7.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75014,76605,74898,75493,70934,72287,67874],"class_list":["post-551265","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-binance","tag-paxos","tag-sec","tag-stablecoin","tag-regulation","tag-security","tag-united-states"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/551265","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=551265"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/551265\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/551266"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=551265"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=551265"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=551265"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}