Paxos Says Cooperation with Binance is No Longer a Priority
Paxos has a lot to deal with these days – but it will do so without Binance’s help.
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According to a fresh Reuters report, Paxos Trust Company, the firm behind Binance's stablecoin, is set to prove that Binance USD, the third best-selling stablecoin, is not a security. Even if that means taking it to court to defend its position.
The company is purportedly holding private talks with the U.S. Securities and Exchange Commission (SEC).
“We are engaged in constructive discussions with the SEC, and we look forward to continuing that dialogue in private,” Paxos CEO Charles Cascarilla noted in an internal email.
It is also reported that Cascarilla added that the company’s recent decision to terminate its cooperation with Binance had nothing to do neither with the New York Department of Financial Services directive, which ordered Paxos to stop minting Binance USD last week, nor with the communication it has had with the SEC over Binance USD.
Last week, as part of its latest crackdown on the crypto industry, the SEC told Paxos that the token should have been registered as a security. In response, Paxos pledged to stop minting new Binance USD from February 21 while continuing to support and redeem the tokens until at least February 2024.
Paxos and Binance’s cooperation dates back to 2019 when the two companies joined forces to launch Binance USD. Back then, the companies expressed excitement about their prospective cooperation.
Read more about the SEC’s crackdown on the industry here.
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