Binance stablecoin backer says U.S. SEC has labeled token an unregistered security

[RealDude]

Binance stablecoin backer says U.S. SEC has labeled token an unregistered security

The firm behind Binance's stablecoin, Paxos Trust Company, said the U.S. Securities and Exchange Commission (SEC) has told the company it should have registered the product as a security and is considering taking action against the platform.

www.reuters.com

 

[khinkali]

This will move people away from BUSD (on ETH) which is backed 1:1 by the NYDFS regulated Paxos Trust Company and towards Tether Limited / iFinex Inc which isn't.

 

[Martin Everson]

Well people know what to do. Move your money out of it and never take a wait and see approach. Run and don't look back.


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Paxos said in a statement that it would stop issuing new Binance USD, which is backed by traditional cash and U.S. Treasury bills, from Feb. 21, but would continue to support and redeem the tokens until at least February 2024.

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