SEC Withdraws Enforcement Action Against Paxos' BUSD Stablecoin

The Securities and Exchange Commission (SEC) has decided to end its investigation into Paxos, a New York-based issuer of stablecoins, suggesting that stablecoins may not be treated as securities in most cases. This decision comes more than a year after the SEC sent Paxos a Wells Notice concerning the BUSD stablecoin, which is backed by the U.S. dollar and issued in partnership with Binance. According to a report from Fortune, the acting chief of the SEC’s crypto assets and cyber unit, Jorge Tenreiro, informed Paxos on July 9 that no enforcement action would be recommended. Paxos’ head of strategy, Walter Hessert, expressed relief, noting that this decision should provide more market certainty and accelerate partnerships with companies like Paypal.