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Paxos has been freed from SEC investigation. Even though we are in a bull market, it feels like a bear market due to many crypto negative events. In such times, even the smallest positive news brings a lot of relief. Everyone knows how the SEC is waging a war against crypto, but this time their decision shocked everyone.
A surprising piece of news is that the SEC has ended its investigation against Paxos. A year ago, the SEC sent a Wells notice to Paxos, a stablecoin issuer, which made it seem like enforcement action would follow. The investigation was related to BUSD, a Binance-backed stablecoin issued by Paxos. The SEC claimed that BUSD was a security, which they say about most cryptocurrencies. And people are well aware of the viewpoint of Gary Gensler, the chairperson of SEC, in regards to cryptocurrencies.
Another Win for Crypto
Recently, the SEC faced a partial defeat in the Binance case. Judge Amy Berman dismissed some points from the SEC’s case against Binance. On July 9, Jorge Tenreiro, the acting chief of the crypto assets and cyber unit, told Paxos he had no intention of recommending enforcement action against them. While the current administration doesn’t seem interested in building proper regulations for crypto, the SEC’s step will create positive sentiment in the crypto world.
Comments from Paxos
Walter Hesserts, Paxos’s strategy head, said the formal termination of the investigation greatly relieved the company and was expected. He hopes this event will bring some stability to the market. The SEC hasn’t commented on this whole event.
Experts believe that some federal judges gradually ruling in favor of crypto and the SEC softening its stance are laying the foundation for the future of crypto. Right now, all crypto enthusiasts are looking forward to the upcoming US election, hoping that if a crypto-supporting administration comes to power, it will greatly support the growth of the crypto ecosystem.