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The U.S. Securities and Exchange Commission (SEC) is abandoning its probe into the stablecoin-issuer Paxos, according to multiple reports.
Per Fortune, the SEC’s decision to no longer pursue Paxos over its $BUSD stablecoin signals a win for the crypto industry, indicating that the regulator is no longer considering stablecoins as securities.
According to an announcement from Binance, the positive news should be taken with a grain of salt.
“This decision marks a significant development in the ongoing discussions surrounding the classification of digital assets.
The SEC’s decision to halt its investigation into PAXOS and its ruling on $BUSD could potentially influence future regulatory decisions regarding other digital assets.
However, it is important to note that the SEC’s decisions are subject to change and may not necessarily set a precedent for future cases.”
The regulator’s decision to ditch the investigation comes over a year after Paxos received a Wells Notice, a letter indicating the SEC’s intent to investigate.
In a statement released in February 2023, Paxos said it received a “Wells Notice” from the SEC as the regulator considered “recommending an action alleging that $BUSD is a security and that Paxos should have registered the offering of $BUSD under the federal securities laws.”
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