SEC to Sue Paxos for Listing $BUSD

According to the Wall Street Journal, the U.S. Securities and Exchange Commission (SEC) plans to sue Paxos, alleging that $BUSD issued by it is an unregistered security. The suit is reportedly for "violating investor protection laws." The SEC has notified Paxos of its potential enforcement action.

Previously, the New York Department of Financial Services (NYDFS) is looking into Paxos, a stablecoin issuer. It is unknown what the full extent of the investigation entails. Paxos' stablecoins include the Pax dollar ($USDP) and Binance USD ($BUSD). The NYDFS spokesperson stated that the agency cannot comment on ongoing investigations.