Paxos reports ‘constructive dialogue’ with the SEC

Infrastructure company and stablecoin issuer Paxos expects to continue constructive discussions with SEC and, if necessary, is prepared to defend its position in court. This was stated by Paxos’s CEO заявлi Charles Cascarilla.

On February 10, NYDFS initiated an investigation into the company. The regulator later ordered Paxos to stop issuing BUSD.

The SEC also stated its readiness to sue Paxos. In the Commission’s notice, it was asserted that the digital asset is a security, with which Paxos ‘categorically disagreed’.

Cascarilla explained that the decision to end the cooperation with Binance was made independently of regulator directives.

“The market has evolved. The relationship with Binance no longer aligns with our current strategic priorities,” he said.

The executive noted that Paxos will continue supporting buyback and conversion operations at least through February 2024. On February 21 the firm paused the issuance of new coins.

Earlier Paxos denied rumors of a possible withdrawal of its application for a full license to operate a national trust bank from OCC.

As reported in February, Bloombergreported a pause in PayPal’s work on the stablecoin. Paxos was a partner in this payments company’s initiative.