In a major development for the Binance USD (BUSD) saga, Charles Cascarilla, CEO of Paxos, has announced that his company is actively in discussions with the U.S. Securities and Exchange Commission (SEC) regarding the recent restrictions on the issuance of BUSD.
Paxos, which was recently ordered by the New York Department of Financial Services to cease BUSD issuance, disagrees with the SEC’s view that BUSD is a security under federal securities law. Cascarilla confirmed in an internal communication that the company plans to defend its position in court through litigation.
Paxos CEO’s Constructive Discussions with the SEC
According to a Reuters report, Cascarilla stated in an email to employees that Paxos is engaged in constructive discussions with the SEC, although the outcome of the discussions is not yet clear. The report quotes Cascarilla as saying, “We are engaged in constructive discussions with the SEC. If necessary, Paxos would defend its position that Binance USD is not a security through litigation.”
The regulatory environment surrounding stablecoins in the United States has become increasingly restrictive, and Binance CEO CZ believes that the crypto market needs stablecoins backed by non-U.S. dollar fiat currencies.
The Debate over Cryptocurrency Securities
The debate over whether cryptocurrencies can be classified as securities has been a long-standing issue in the United States, with the SEC’s views on XRP’s credentials being widely known.
In the midst of the ongoing discussions, the crypto community awaits the outcome of the talks between Paxos and the SEC regarding BUSD issuance.