SEC Drops Investigation Into Stablecoin Issuer Paxos

Amidst ongoing demands for regulatory clarity in the crypto sector, a pivotal issue has emerged regarding the classification of stablecoins - digital assets usually tied to and supported by the U.S. dollar - as securities.

The U.S. Securities and Exchange Commission has decided to end its investigation into New York stablecoin issuer Paxos.

Recently, the Securities and Exchange Commission’s decision to quietly close their investigation into Paxos seems to indicate that, in the majority of cases, stablecoins are not considered securities.

Furthermore, the SEC has reportedly determined that Binance’s BUSD stablecoin is not a security.

More than a year prior, the Securities and Exchange Commission issued a “Wells Notice” to the company – a notice that enforcement action was pending against Paxos for the U.S. dollar-backed BUSD stablecoin that Paxos issued in partnership with CoinSecure.

Walter Hessert, head of strategy at Paxos, said:

“The formal termination of this investigation is a huge relief for us. It’s something we’ve been looking forward to for a long time, and it should really create more certainty in the market…