Report: SEC closes investigation into Paxos and rules that BUSD stablecoin is not a security

According to several reports, the US Securities and Exchange Commission (SEC) is discontinuing its investigation into stablecoin issuer Paxos.

According to Fortune, the SEC’s decision to stop pursuing Paxos over its BUSD stablecoin is a win for the crypto industry and suggests that the regulator no longer views stablecoins as securities.

According to a statement from Binance, the positive news should be taken with caution.

“This decision represents a significant development in the ongoing discussions surrounding the classification of digital assets.

The SEC’s decision to close its investigation into PAXOS and its decision on BUSD could potentially influence future regulatory decisions regarding other digital assets.

It is important to note, however, that the SEC’s decisions are subject to change and do not necessarily set a precedent for future cases.”

The regulator’s decision to close the investigation came more than a year after Paxos received a Wells Notice, a letter announcing the SEC’s intent to investigate.

In a statement released in February 2023, Paxos said it had received a “Wells Notice” from the SEC as the regulator was considering “recommending a lawsuit alleging that BUSD is a security and that Paxos should have registered the offering of BUSD under the federal securities laws.”

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