WSJ: Crypto Firm Paxos Faces SEC Lawsuit Over Binance USD Token

Wall Street Journal (gated) with the report. In brief:

• The Securities and Exchange Commission Securities and Exchange Commission The Securities and Exchange Commission (SEC) is an independent agency in the United States operating under the authority of the Federal government. In particular, the SEC has a large mandate domestically, helping oversee and monitor markets and acting as a deterrent against fraud or abuse. This includes enforcing federal securities laws, proposing securities rules, and regulating the US’ stock and options exchanges. As one of the primary regulatory authorities in the US along with the Commodity The Securities and Exchange Commission (SEC) is an independent agency in the United States operating under the authority of the Federal government. In particular, the SEC has a large mandate domestically, helping oversee and monitor markets and acting as a deterrent against fraud or abuse. This includes enforcing federal securities laws, proposing securities rules, and regulating the US’ stock and options exchanges. As one of the primary regulatory authorities in the US along with the Commodity Read this Term has told crypto firm Paxos Trust Co. that it plans to sue the company for violating investor protection laws, according to people familiar with the matter
• The SEC’s enforcement staff issued a letter to Paxos known as a Wells notice, which the agency uses to inform companies and individuals of a possible enforcement action, according to the people.
• The notice alleges that Binance USD, a digital asset that Paxos issues and lists, is an unregistered security, according to the people.

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