SEC Lawsuit Against Paxos Over BUSD Baffles Crypto Community

Paxos and Binance USD (BUSD) being in the sights of United States regulators sparked various reactions from the crypto community.

On Feb. 13, the U.S. Securities and Exchange Commission (SEC) issued a Wells Notice to Paxos, alleging that BUSD is unregistered security. On the same day, the New York Department of Financial Services (NYDFS) also ordered Paxos to halt the issuance of BUSD.

As Paxos faces regulatory scrutiny on several fronts, various members of the crypto community went to Twitter to give their takes on the situation. From disregarding the issue as “FUD” to calling it an attack against the Binance exchange, crypto community members laid down various theories on the allegations that BUSD is an unregistered security.

(By EZRA REGUERRA)

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