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On Feb 13, the U.S. Securities and Exchange Commission (SEC) announced that it was opening an investigation into the issuance of BUSD on allegations that it violated existing securities regulations. Although the latter has not yet instituted proceedings against the bus-transmitting paxos, It is expected that the corporation will provide the board with reasons why it should not be prosecuted.
In the first place, paxos is able to reach a regulation with the dry, a measure that is most likely to result in the payment of a fine and registration with the board. The decision to settle with the sec may force other issuers' hands to apply for registration as issuing securities.
Widely regarded as the easiest solution, paxos can still face the dry up before the courts to refute allegations that it offers unregistered titles to the public. This option seems to have gained a lot of traction among industry stakeholders as they continue to criticize the industry's thinking.
'It is possible for paxos to argue aggressively against dryness. 'Paxos may argue aggressively against the SEC.
A keen example of Marioti’s reasoning can be gleaned from the long-running legal battle between the SEC and Ripple Labs over the issuance of XRP. "the mere fact that paxos battled the dry would create a risk and could make the bus less attractive to the market." advertising.
Regulating the assets backing stablecoins
Depending on Paxos’ response to the Wells notice, the SEC may choose to abandon its threat of legal action to regulate the assets backing stablecoins. Regulating stable-backed assets while waiting for the response of the paxos to well advice, the sec may choose to drop its legal threat to regulate stable-backed assets.
“Absent a successful fight, it is most likely BUSD will no longer be sold into the U.S. or be available on U.S.-based digital asset exchanges,” said Townsend Lansing, Head of Product at CoinShares. This option may seem improbable to the commission, but experts say the court precedent could support this option.
In the absence of an effective fight, It is highly likely that BUSD will no longer be sold in the United States or offered on American digital asset exchanges," said Townsend Lansing, Product Manager within CoinShares.
