According to Reuters, Paxos is having a constructive discussion with the SEC.
Details on the talks came a week after Paxos said it had received a Wells Notice from the regulator. In the past few weeks, the SEC has put Paxos on its radar.
Talks Continue Between Paxos and SEC
According to Reuters, stablecoin issuer Paxos is having a constructive meeting with the US Securities and Exchange Commission (SEC).
Details from the company’s chief executive came a week after the Wells Notice was received. The Wells Notice is a tool used by the SEC to argue that certain activities may violate federal securities law and may indicate the SEC’s intent to sue.
In recent weeks, the SEC has been preparing to sue Paxos for violating investor protection laws. An agent of the agency informed Paxos about the possible causes by sending a letter.
The notification Paxos received was linked to the company’s issuance of Binance USD (BUSD), a branded stablecoin product. The company’s own stablecoin product, the Pax Dollar (USDP), was not included in the announcement.
Paxos has already announced that it will stop issuing BUSD after receiving a notice from the New York Department of Financial Services, the state regulator that oversees it.
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