US authorities will file a lawsuit against the issuer of Binance USD Paxos

The US Securities and Exchange Commission (SEC) plans to file a lawsuit against the issuerstablecoins Binance USD (BUSD) from Paxos.

From anonymous sources it became known thatPaxos employees received a Wells notice from the SEC. Officials are allegedly preparing to accuse the company of issuing and listing unregistered securities on stock exchanges.

Under current regulations, companieswho have been sent a Wells notice have the right to respond in writing and explain why the regulator does not need to go to court. Therefore, the case will not come to a legal battle if Paxos specialists manage to prove the groundlessness of the charges.

Recently, the Kraken crypto exchange was fined by the SEC$30 million for providing services related to staking digital assets in violation of securities laws. Commission Chairman Gary Gensler said that all companies that enter into investment contracts in exchange for investor tokens are required to comply with the requirements of the regulatory act governing the circulation of securities. In this regard, it can be assumed that Paxos was suspected of illegal activities due to the fact that clients of trading platforms use Binance USD coins to generate income, for example, by opening savings accounts.

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