Paxos: BUSD is not a 'security' and will Sue SEC if necessary

BlockBeats: On February 14, Stablecoin issuer Paxos issued a statement stating that it had received a Wells Notice from the Securities and Exchange Commission (SEC), but strongly disagreed with the SEC staff because BUSDs are not securities under federal securities laws. To be clear, Paxos is not facing additional charges. In addition, Paxos has always put the safety of its customers' assets first. The BUSDs issued by Paxos are always backed by dollar-denominated reserves in a 1:1 ratio and are completely segregated and kept in the bankruptcy remote account. Paxos said it would engage with SEC staff on the issue and was prepared to litigate aggressively if necessary.