Complete Story


Confusion Spirals in Crypto as the U.S. Cracks Down

The SEC has launched enforcement actions against some of them

The U.S. Securities and Exchange Commission (SEC) is on the warpath—and crypto is in its crosshairs. Over the weekend, The Wall Street Journal reported that the agency intends to sue crypto firm Paxos for issuing BUSD, a stablecoin developed in partnership with the world's largest crypto exchange, Binance.

The SEC declined to comment, but Paxos, which is based in New York and Singapore, confirmed today that the agency alleges BUSD should have been registered as a security in the US, which requires compliance with complex rules. In a statement, the firm said it "categorically disagrees" that BUSD is a security but has complied with an order from the New York Department of Financial Services to halt the creation of any new BUSD, effectively strangling the coin.

Paxos did not respond to a request for comment. Binance's chief strategy officer, Patrick Hillmann, declined to comment on how the SEC's action would affect the exchange but said the firm will be "reviewing other projects to ensure users are insulated from further undue harm."

Please select this link to read the complete article from WIRED.

Printer-Friendly Version