Paxos CEO provides to support Binance Dollar (BUSD) in court

  • Paxos CEO Charles Cascarilla said his company and the SEC are communicating (SEC).

  • Given the US regulators' strict attitude on stablecoins, Binance CEO CZ said stablecoins backed by non-US Dollar fiat currencies should be accepted in the crypto market.

22 Feb 2023 By: Rohit Khandelwal
Paxos CEO provides t

Charles Cascarilla, the CEO of Paxos, stated that his company and the U.S. Securities and Exchange Commission are currently in communication (SEC).

The Paxos CEO Charles Cascarilla appears to be actively conversing with the U.S. Securities and Exchange Commission (SEC) about the recent restrictions on the issuance of the stablecoin, according to the most recent development in the Binance USD (BUSD) incident. Paxos is currently under a court order from the New York Department of Financial Services to stop issuing BUSD. The company had previously stated that it vehemently disagrees with the SEC's position that BUSD does not qualify as a security under federal securities legislation. Using the same line of reasoning, Cascarilla stated in an internal communication that the company would use legal action to support its claim in court that BUSD is not a security.

In A Conversation That Is Positive

According to a Reuters article, the CEO of Paxos recently informed staff via email that the company was having productive negotiations with the SEC. What sort of resolution the two parties will reach after their discussions is not yet obvious, though. We are having productive conversations with the SEC, Cascarilla was quoted as saying in the paper. Paxos would use legal action, if required, to support its claim that Binance USD is not a security.

Binance CEO CZ said it was time for stablecoins backed by non-US Dollar fiat currencies to be accepted in the cryptocurrency market given the US regulators' stringent stance on stablecoins.

In addition, the classification of cryptocurrencies as securities has been the subject of a protracted discussion in the United States, with the SEC's position on XRP's credentials being well publicised.