The U.S. Securities and Exchange Commission (SEC) is abandoning its probe into the stablecoin-issuer Paxos, according to multiple reports.
Per Fortune, the SEC’s decision to no longer pursue Paxos over its BUSD stablecoin signals a win for the crypto industry, indicating that the regulator is no longer considering stablecoins as securities.
According to an announcement from Binance, the positive news should be taken with a grain of salt.
“This decision marks a significant development in the ongoing discussions surrounding the classification of digital assets.
The SEC’s decision to halt its investigation into PAXOS and its ruling on BUSD could potentially influence future regulatory decisions regarding other digital assets.
However, it is important to note that the SEC’s decisions are subject to change and may not necessarily set a precedent for future cases.”
The regulator’s decision to ditch the investigation comes over a year after Paxos received a Wells Notice, a letter indicating the SEC’s intent to investigate.
In a statement released in February 2023, Paxos said it received a “Wells Notice” from the SEC as the regulator considered “recommending an action alleging that BUSD is a security and that Paxos should have registered the offering of BUSD under the federal securities laws.”
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