According to an email sent internally by Paxos CEO and founder Charles Cascarilla, the Paxos Trust firm, which is the issuer of Binance’s stablecoin BUSD, is still in a disagreement with the United States Securities and Exchange Commission (SEC) over a ban on the minting of stablecoins.
The New York Department of Financial Services (NYDFS) issued a directive on February 13 mandating that the company responsible for the minting of BUSD coins immediately cease the production of more stablecoins. Paxos had agreed to halt the issuance of Binance’s stablecoins beginning on February 21.
Notwithstanding this, Paxos Trust argued with the Securities and Exchange Commission (SEC) later that the limitation that Binance stablecoins are not a security under the Federal security statute should be lifted.
A recent email sent from an employee to the CEO of Paxos was highlighted by Reuters. In the email, the CEO’s employee said, “We are engaged in productive talks with the SEC, and we look forward to continuing that communication in private.” In a similar manner, Cascarilla maintains this as an internal communication, stating that the corporation will use legal action to defend its assertion that the BUSD is not a security.
Compiled by Coinbold