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A significant boost for the cryptocurrency sector emerged as the US Securities and Exchange Commission (SEC) wrapped up its investigation into Paxos, the issuer of the Binance USD stablecoin, without proposing any enforcement action. This development, shared by Jorge Tenreiro of the SEC’s specialized Crypto Asset and Cyber Unit, potentially alleviates concerns about the regulatory future of stablecoins.
Paxos faced scrutiny when it received a Wells notice from the SEC in February 2023, signaling potential legal challenges over whether its Binance USD coin should be considered an unregistered security. However, following a favorable court decision last month regarding Binance’s native token, the SEC has refrained from further action, marking a precedent that could influence regulatory treatment of digital assets.
This closure heralds a more predictable regulatory landscape, encouraging larger entities to consider crypto investments. According to Walter Hessert of Paxos, this resolution could significantly enhance market certainty and foster expansion in the stablecoin arena.
