Regulation
SEC Closes Paxos Investigation, Marks Victory for Crypto Industry
The U.S. Securities and Exchange Commission (SEC) has concluded his investigation into Stepa New York-based stablecoin issuer, without recommending coercive measures.
What happened: Jorge TenreiroActing Chief of the SEC’s Cryptocurrency and Cybersecurity Unit, informed Paxos of the decision, Fortune reported. This comes after the SEC issued a Wells warning to Paxos over its BUSD stablecoin, which is backed by the US dollar and issued in partnership with Binance.
The SEC’s decision follows a partial defeat in a case against Binance, where a federal judge ruled that the BUSD sales did not constitute a securities offering. That ruling appears to have affected the SEC’s stance on the issue.
Walter HessertPaxos’ chief strategy officer, expressed relief at the decision, saying it should create more market certainty. The SEC declined to comment on whether the investigation was ongoing when contacted by Fortune.
Because matter: The conclusion of this investigation is seen as a significant victory for the stablecoin industry amidst the current regulatory uncertainty. The investigation had been a cause for concern for many in the cryptocurrency industry, especially given recent regulatory actions and statements.
In May, the SEC chairman Author: Gary Gensler criticized the Financial Innovation and Technology for the 21st Century Act (FIT21), warning that it would create new regulatory gaps and undermine investor protections. The SEC’s tough stance on cryptocurrency regulation has been a source of tension within the industry.
Cryptocurrency industry experts have called for bipartisan support for strong cryptocurrency policies, stressing that “pro-crypto is pro-American values.” This comes after the U.S. Senate voted to pour over SEC Accounting Bulletin No. 121 (SAB 121), a rule that had been the subject of controversy within the industry.
Vitalik Buterinco-founder of Ethereum, expressed concern about the current state of cryptocurrency regulation in July, criticize the “anarcho-tyranny” of current regulations.
The SEC’s decision to end its investigation into Paxos without taking enforcement action is seen as a positive step for the industry, as it could ease some of the regulatory pressures that have been a significant concern for cryptocurrency firms.
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This content was produced in part with the help of artificial intelligence tools, and was reviewed and published by Benzinga editors.
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