Breaking: Paxos CEO Offers To Defend Binance USD (BUSD) In Court

Paxos Binance BUSD News: In a latest development in the Binance USD (BUSD) episode, Paxos CEO Charles Cascarilla seems to be actively engaged with the U.S. Securities and Exchange Commission (SEC) over the recent restrictions on the issuance of the stablecoin. The New York Department of Financial Services recently ordered Paxos to stop issuing BUSD. The company had then said it categorically disagrees with the SEC’s views BUSD was not a security under the Federal securities law. Sticking to the same argument, Cascarilla said in an internal communication that the company would defend its position in courts that BUSD is not a security through litigation.

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In A Constructive Discussion

According to a Reuters report, a recent email to employees from the Paxos CEO said the company was in engaged in constructive discussions with the SEC. However, it is not clear yet as to what kind of a conclusion the two parties will arrive at from the discussions. The report quoted Cascarilla as saying,

“We are engaged in constructive discussions with the SEC. If necessary, Paxos would defend its position that Binance USD is not a security through litigation.”

With the US regulators’ restrictive attitude towards stablecoins, Binance CEO CZ felt it was time that the crypto market has place for stablecoins backed by the non-US Dollar fiat currencies.

Read More: After BUSD Fall, Binance’s CZ Supporting This Stablecoin?

Besides, whether cryptocurrencies can be classified as securities has been a long drawn debate in the United States, with the SEC’s views of XRP’s credentials popularly known.