SEC Ends Investigation into Paxos Over Binance Stablecoin

The Securities and Exchange Commission has ended its investigation into stablecoin company Paxos and will not pursue enforcement action over its past issuance of BUSD, a Binance-branded stablecoin.

Paxos said Thursday it received a formal notice from the SEC on July 9 about the termination of the investigation, more than a year after the regulator sent a Wells notice warning it was considering an action alleging Binance USD is an unregistered security.

Paxos stopped issuing new BUSD last year and ended the relationship with Binance.