"BUSD is also a victim, is USDT the same?"
After attacking cryptocurrency exchange company Kraken, the United States (US) Securities and Exchange Commission (SEC) sued Paxos Trust Company, the world's third largest stablecoin issuer Binance USD (BUSD).
The SEC enforcement staff issued or notified Wells* to Paxos regarding the enforcement that will be imposed on his company in the near future for the offense of issuing BUSD unregistered.
However, it is still unclear whether the SEC's notice is specifically about the issuance or listing of BUSD or both.
According to a representative of the company Paxos, they will not comment on the issue but Binance said that BUSD is in the process of being issued by the company that has licensed its brand.
Binance also clarified its market position by mentioning that BUSD is one of the most transparent stablecoins.
Through Wells' notice, Binance can respond to the SEC to explain why it should not proceed with the lawsuit, which requires a vote by the agency's five commissioners to resolve the issue.
Although the SEC has not taken any hard action against stablecoins, they now intend to increase their oversight of the market on a daily basis.
While the New York State Department of Financial Services (NYDFS) last week was also found to be investigating Paxos regarding concerns about the issuance of BUSD, where they want to understand the vulnerabilities and risks to users and the company.
