Paxos Trust Company, the issuer of Binance USD, is ready to take legal action against the U.S. Securities and Exchange Commission (SEC) following a Wells notice.
The SEC alleged that BUSD was not registered with the agency, breaching federal securities laws. Paxos disagreed with the claim and assured customers that the stablecoin was backed 1:1 with USD.
The SEC’s allegations pertain only to BUSD and no other allegations have been made against Paxos. The firm has promised to engage with the SEC and will “vigorously litigate” if necessary.
Meanwhile, the New York Department of Financial Services has ordered the firm to stop issuing new BUSD.
