Blockchain
SEC Finally Drops Paxos Investigation
Paxos has been released from the SEC investigation. Even though we are in a bull market, it looks like a bear market due to many negative events in cryptocurrencies. In times like these, even the smallest positive news brings a lot of relief. Everyone knows that the SEC is waging a war against cryptocurrencies, but this time their decision has shocked everyone.
A surprising piece of news is that the SEC has concluded its investigation against Paxos. A year ago, the SEC sent a Wells’s Notice to Paxosa stablecoin issuer, which made it seem like enforcement action would follow. The investigation was related to BUSD, a Binance-backed stablecoin issued by Paxos. The SEC said BUSD was a security, which they say is true of most cryptocurrencies. And people are well aware of Gary Gensler, the chairman of the SEC,’s views on cryptocurrencies.
Another Victory for Cryptocurrencies
The SEC recently faced a partial defeat in the Binance case. Judge Amy Berman dismissed some of the SEC’s case against Binance. On July 9, Jorge Tenreiro, the acting head of the crypto and cyber unit, told Paxos that he had no intention of recommending enforcement action against them. While the current administration does not seem to be interested in creating adequate regulations for cryptocurrencies, the SEC’s move will create positive sentiment in the crypto world. The SEC clears Paxos of charges and denies that BUSD is a security.
Walter Hesserts, Paxos’ chief strategy officer, said the formal conclusion of the investigation was a huge relief for the company and was to be expected. He hopes this event will bring some stability to the market. The SEC has not commented on the entire event.
Experts believe that some federal judges have gradually ruled in favor of cryptocurrencies and the SEC has softened its stance, laying the foundation for the future of cryptocurrencies. At this time, all cryptocurrency enthusiasts are looking forward to the upcoming US elections, hoping that if a crypto-friendly administration comes to power, it will greatly support the growth of the cryptocurrency ecosystem.