The Paxos Trust Company has issued a statement that it “categorically disagrees” with the United States Securities and Exchange Commission’s characterization of Binance USD (BUSD) as a security.

In a statement published on February 13, the issuer of BUSD confirmed recent reports that the United States Securities and Exchange Commission had sent it a notice from Wells regarding BUSD and its alleged failure to register the offer of agreement. with federal securities laws. These reports relate to BUSD and its alleged failure to register the offer.

According to Paxos, “Paxos unequivocally disagrees with the SEC staff that BUSD is not a security under federal securities laws.” Paxos said that this disagreement was reached.

The company said it had received the notification on February 3, adding that “there are certainly no further charges against Paxos.”

The statement went on to say that “we will engage in this matter with SEC staff and are prepared to litigate fiercely if necessary.”

Paxos was instructed to suspend the issuance of BUSD on February 13 by the New York Department of Financial Services (NYDFS).

Paxos indicated that it would comply with the request by tweeting on February 13 that it will stop minting new BUSD tokens as of February 21.

Paxos, on the other hand, has said that BUSD will continue to receive full support and remain redeemable for newly added customers until at least February 2024.

Paxos stated that “new and existing Paxos customers will be able to redeem their US dollar funds or convert their BUSD tokens to Pax Dollar (USDP), a regulated US dollar-backed stablecoin also issued by the Paxos Trust.” Paxos customers will be able to redeem their funds in US dollars or convert their BUSD tokens to Pax Dollar (USDP).

It has been claimed that the New York State Department of Financial Services, often known as the NYDFS, received a complaint about Binance’s reserves from stablecoin issuer Circle prior to the exchange’s crackdown on BUSD.

Despite the US Securities and Exchange Commission and the New York Department of Financial Services ordering Paxos to stop minting BUSD, Binance CEO Changpeng “CZ” Zhao has said the exchange will continue to supporting the stablecoin.