Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Breaking: SEC Concludes Investigation of Paxos, Confirming Stablecoins Are Not Classified as Securities
The SEC has concluded its investigation into the crypto company Paxos regarding its BUSD stablecoin, following a Wells Notice issued to the firm a year prior, according to a report by Fortune.
Scoop: The SEC has ceased its inquiry into Paxos concerning its stablecoin BUSD, marking a significant victory for the crypto sector.
This decision comes over a year after the agency delivered a Wells notice to Paxos indicating a forthcoming enforcement action: https://t.co/FtqfnNEXRq
— Leo Schwartz (@leomschwartz) July 11, 2024
This development is regarded as a substantial victory for the cryptocurrency market.
Since the SEC’s Wells Notice to Paxos a year ago, there has been ambiguity regarding whether stablecoins would be classified as securities in the United States.
The SEC’s choice to terminate its investigation into Paxos implies that stablecoins are unlikely to be categorized as securities in the US.
SEC Ends Investigation Into Paxos – Conclusion of Anti-Crypto Phase?
The SEC’s decision to discontinue its investigation into Paxos’ BUSD stablecoin indicates a potential shift in the anti-crypto posture of US policymakers.
In 2023, the SEC initiated a vigorous regulation by enforcement strategy against the cryptocurrency industry.
The central assertion was that most cryptocurrencies are securities and should be regulated accordingly.
Related Posts
Critics of the SEC argued that this approach was intended to instill fear and disorder within the crypto space, possibly threatening its survival.
However, 2024 has witnessed a reversal of this policy stance. The SEC had been advocating for the classification of Ethereum as a security.
Yet, a few months ago, it made a sudden policy shift and approved Ethereum ETFs.
These ETFs are anticipated to launch before the month’s end.
The changing position of the SEC may be influenced by political factors. Republican Presidential candidate Trump has recently expressed strong support for cryptocurrency.
DONALD TRUMP TO SPEAK AT BITCOIN 2024 CONFERENCE IN NASHVILLE pic.twitter.com/0qjyUO54VA
— Dylan LeClair
(@DylanLeClair_) July 10, 2024
This has compelled the Democrats to adopt a less anti-crypto stance, potentially exerting pressure on the SEC to adopt a more favorable approach toward the industry.
If Trump secures re-election, which currently seems probable, a new SEC is anticipated regardless.
The post Breaking: SEC Drops Probe Into Paxos, Affirming Stablecoins’ Non-Security Status appeared first on Cryptonews.
