According to Fortune, the SEC ended its investigation into Paxos and decided that BUSD is not a security.
According to the news, the SEC decided to quietly end the investigation into New York-based stablecoin issuer Paxos.
This decision comes more than a year after the SEC sent a Wells notice, or letter, signaling impending enforcement action to Paxos over the dollar-backed BUSD stablecoin that Paxos issued in partnership with Binance.
Analysts commenting on this decision said that while Congress continues to consider legislation to regulate the growing stablecoin class, the SEC's decision offers an unexpected benefit to the stablecoin industry, which now includes companies such as PayPal and VanEck.
Paxos' chief strategy officer, Walter Hessert, told Fortune:
“It is a great relief for us that this investigation has been officially concluded.
“This is what we have been waiting for all along and we hope it will create greater certainty in the market among a growing number of large businesses.”
New York-based Paxos first launched BUSD in partnership with Binance in September 2019.
*This is not investment advice.