TechFlow News, according to Fortune, the U.S. Securities and Exchange Commission (SEC) has decided to end its investigation into Paxos, the issuer of the New York-based stablecoin, concluding that BUSD is not a security. On July 9, Jorge Tenreiro, acting director of the Division of Crypto Assets and Cyber Enforcement, stated in a letter to Fortune that he does not intend to recommend enforcement action.
For over a year prior, the SEC had issued a Wells Notice to Paxos, signaling potential enforcement proceedings related to BUSD, a dollar-backed stablecoin issued by Paxos in partnership with Binance. Walter Hessert, Paxos’s head of strategy, said the formal closure of this investigation brings significant relief and expects it will create greater market certainty, encouraging more major enterprises to participate.
