Paxos is the company that holds deposits for and issues $BUSD. They've been given notice that the SEC intends to sue them.
Over what is not exactly clear yet.
Typically the SEC goes after securities. Part of the usual definition of securities is the expectation of gain. Paxos makes no claims about gains. You give them 1 USD, the give you 1 BUSD. You give them 1 BUSD, they give you 1 USD. So that would seem to not be a security on the face of it.
There has been some speculation that the issue is that Paxos does invest those USD deposits to obtain some investment return on its own behalf and that is the issue.
Another speculation is that Paxos deposits "resemble" bank deposits and that is the issue. Bank deposit issues typically wouldn't come under the SEC though.
For now, Paxos has halted minting new $BUSD.
$BUSD is under some sell pressure.
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Best to move from BUSD to HBD.
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Algo Coins are not stablecoins, it's a different animal. We should not always throw them together. Goals, tech, structure, everything is different. The only thing in common is that they try to stay at @1$ exchange value against all odds.
Maybe a dumb question, but is the Paxos issued BUSD the same as the Binance issued BUSD?
Read the above from this article and am like totally confused.
I never paid attention to the disctinction before either. From what I have gathered
fiat -> paxos -> erc20 busd
erc20 busd -> binance -> busd on all other chains
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I was wondering if Paxos was required due to the Binance restrictions in the US.
I convert AUD to BUSD in Binance and I assume it's Binance that issues it. If that's the case, this SEC lawsuit will only have implications on the issuance of BUSD in the US?
Why are they sitting around in New York? This smells like an arm of Wall Street all of a sudden. Unbelievably, I never checked and fell under the impression that BUSD was minted and emitted by Binance.com and legally at home with their headquarters.
Sounds like a power struggle to me
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Agree with BUSD not appearing to be a security. I am intrigued to learn more as this story unfolds.
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