Foreign media: SEC abandons investigation into PAXOS, determines BUSD is not a security

ChainCatcher news, according to Fortune magazine, the U.S. Securities and Exchange Commission has decided to end its investigation into New York stablecoin issuer Paxos, determining that BUSD is not a security.

On July 9, Jorge Tenreiro, acting head of the crypto assets and cyber unit, stated in a letter to Fortune that he had no intention of recommending enforcement action. Over the past year, the SEC had issued a Wells notice to Paxos, which is a notification that enforcement action is forthcoming, regarding Paxos's partnership with Binance to issue the dollar-backed BUSD stablecoin.

Paxos's Chief Strategy Officer Walter Hessert said in an interview, "The formal termination of this investigation is a huge relief for us. This has been our expectation all along, and it should indeed create more certainty in the market, as we see more and more large enterprises joining."