According to recent reports, the issuer of the stablecoin Paxos was allegedly entering into discussions with the United States Securities and Exchange Commission (SEC) about the stablecoin Binance USD (BUSD) after receiving a notice from Wells from the relevant financial institution. .

In an article published by Reuters on February 21, Charles Cascarilla, CEO of Paxos, was quoted as saying that the company was “engaging in productive negotiations” with the SEC and that they will continue to speak behind closed doors. This statement was made in reference to ongoing negotiations between Paxos and the SEC. After the SEC filed a lawsuit against the issuer of the stablecoin, alleging that the BUSD cryptocurrency was an unregistered security, the issuer of the stablecoin decided to publish the investigation shortly after the complaint was filed.

Cascarilla was quoted as saying that Paxos would consider legal action to support its contention that BUSD did not constitute a security. These stories are based on statements made by Cascarilla. Paxos is licensed to operate in the state of New York in the United States, and on February 13, the New York Department of Financial Services issued an order requiring the company to stop issuing BUSD. Paxos holds a license to operate in New York. The corporation has revealed that it would stop minting the stablecoin as of February 21, as stated in the notice it posted.

The investigation into Paxos may have been prompted by a notice from Circle, which allegedly filed a complaint with the state regulator regarding Binance’s reserves. The New York Department of Financial Services is responsible for overseeing the financial industry in New York State. Binance analytics showed that there was a rush of withdrawals following the BUSD news, with around $2.7 billion in cash leaving the site between February 12-13. This information was revealed on February 13.