According to the Wall Street Journal, the U.S. Securities and Exchange Commission (SEC) issued a notice to Paxos Trust Co saying it plans to sue the company for violating investor protection laws.
The notice alleges that Binance USD (BUSD), which Paxos issues, is an unregistered security.
It is important to note that the SEC sent the company a “Wells” type notice.
This type of notice requires the firm to provide a reasoned response in writing explaining why the SEC should not take legal action. Wells notices are not a definitive indication that the SEC will take enforcement action against a company.
Holpop News
Holpop News
WSJ: SEC Named BUSD an Unregistered Security and Said It Intends to Sue Paxos
posted on February 13, 2023 by holpop in Blockchain
