Paxos and BUSD Hit by SEC Lawsuit
Paxos, a New York-based financial firm focusing on crypto, has just been sent a Wells Notice by the SEC that they will begin enforcing the firm over their mining of BUSD, Binance’s stablecoin which they will cease to mint.
Binance’s founder and CEO CZ was quick to reply to the lawsuit on Twitter where he informed investors that their BUSD will remain safe. However, he also mentioned that Paxos is fully in charge of operating and managing the BUSD token, so, by being forced to shut down, the market cap of BSUD will begin to slowly decrease.
The move comes after increased scrutiny of the web3 industry by U.S. lawmakers and regulatory bodies. The SEC is already involved with an ongoing lawsuit with Ripple that’ll likely determine whether cryptocurrency is regulated as a security or a commodity.
