{"id":551493,"date":"2023-02-14T03:05:04","date_gmt":"2023-02-14T00:05:04","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/paxos-categorically-disagrees-with-the-sec-that-busd-is-a-security\/"},"modified":"2023-02-14T03:05:04","modified_gmt":"2023-02-14T00:05:04","slug":"paxos-categorically-disagrees-with-the-sec-that-busd-is-a-security","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/paxos-categorically-disagrees-with-the-sec-that-busd-is-a-security\/","title":{"rendered":"# Paxos \u2018categorically disagrees\u2019 with the SEC that BUSD is a security"},"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-6a3a1cb65485e\" 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-6a3a1cb65485e\" 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\/paxos-categorically-disagrees-with-the-sec-that-busd-is-a-security\/#%E2%80%9D_Paxos_%E2%80%98categorically_disagrees_with_the_SEC_that_BUSD_is_a_security_%E2%80%9C\" >&#8221; Paxos \u2018categorically disagrees\u2019 with the SEC that BUSD is a security  &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Paxos_%E2%80%98categorically_disagrees_with_the_SEC_that_BUSD_is_a_security_%E2%80%9C\"><\/span>&#8221; Paxos \u2018categorically disagrees\u2019 with the SEC that BUSD is a security  &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDIvZWY1OWNhOGItYzcxOS00ZDcyLTg2ODQtM2I5NzVkZTM2ZjdmLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-4bbf85c5>Paxos Trust Company has released a statement noting that it &#8220;categorically disagrees&#8221; with the United States securities regulator which has painted Binance USD (BUSD) as a security.\u00a0<\/p>\n<p>In the Feb. 13 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.prnewswire.com\/news-releases\/paxos-issues-statement-301745616.html\">statement<\/a>, the BUSD issuer confirmed recent reports that it had received a Wells notice from the United States Securities and Exchange Commission (SEC) over BUSD and its alleged failure to register the offering under federal securities laws.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">END\/ Paxos remains dedicated to the development of stablecoins, tokenization &amp; <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/blockchain?src=hash&amp;ref_src=twsrc%5Etfw\">#blockchain<\/a> <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a>. We\u2019ll continue serving the world\u2019s most respected and established companies to create a more open financial system.<\/p>\n<p>\u2014 Paxos (@PaxosGlobal) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/PaxosGlobal\/status\/1625091942252965889?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>&#8220;Paxos categorically disagrees with the SEC staff because BUSD is not a security under the federal securities laws,&#8221; Paxos said. <\/p>\n<p>The firm noted it had received the notice on Feb. 3, adding that &#8220;there are unequivocally no other allegations against Paxos.&#8221;<\/p>\n<p>&#8220;We will engage with the SEC staff on this issue and are prepared to vigorously litigate if necessary,&#8221; it added. <\/p>\n<p>On Feb. 13, New York Department of Financial Services (NYDFS) ordered Paxos to halt the issuance of BUSD.<\/p>\n<p>Following the order, Paxos announced in a Feb. 13 <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/PaxosGlobal\/status\/1625091554951004161\">post<\/a> it will halt minting new BUSD tokens effective Feb. 21. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">3\/ Paxos will continue to manage all outstanding BUSD reserves, ensuring all BUSD are always backed 1:1 with US dollar-denominated reserves held in bankruptcy remote accounts.<\/p>\n<p>\u2014 Paxos (@PaxosGlobal) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/PaxosGlobal\/status\/1625091771309993984?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>However, Paxos has said BUSD will remain fully supported and redeemable to onboarded customers through at least February 2024.<\/p>\n<p>&#8220;New and existing Paxos customers will be able to redeem their funds in US dollars or convert their BUSD tokens to Pax Dollar (USDP), a regulated US dollar-backed stablecoin also issued by Paxos Trust,&#8221; Paxos said. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>SEC lawsuit against Paxos over BUSD baffles crypto community<\/em><\/strong><\/p>\n<p>New York State&#8217;s Department of Financial Services, or NYDFS, reportedly received a complaint from stablecoin issuer Circle regarding Binance&#8217;s reserves prior to its crackdown on BUSD.<\/p>\n<p>Binance CEO Changpeng &#8220;CZ&#8221; Zhao says the exchange will continue to support BUSD despite issuer Paxos being ordered to stop minting the stablecoin by the U.S. SEC and New York regulators.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/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 <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> 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\/paxos-categorically-disagrees-with-the-sec-that-busd-is-a-security\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Paxos \u2018categorically disagrees\u2019 with the SEC that BUSD is a security &#8220; Paxos Trust Company has released a statement noting that it &#8220;categorically disagrees&#8221; with the United States securities regulator which has painted Binance USD (BUSD) as a security.\u00a0 In the Feb. 13 statement, the BUSD issuer confirmed recent reports that it had received&#8230;<\/p>\n","protected":false},"author":1,"featured_media":551494,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/ef59ca8b-c719-4d72-8684-3b975de36f7f.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,75014,76605,74898,75493,117,70934,72287],"class_list":["post-551493","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-binance","tag-paxos","tag-sec","tag-stablecoin","tag-business","tag-regulation","tag-security"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/551493","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=551493"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/551493\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/551494"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=551493"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=551493"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=551493"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}