​Paxos is in talks with the SEC about the Binance USD stableco | Altcoin Holder

​Paxos is in talks with the SEC about the Binance USD stablecoin

Paxos Trust, the issuer of the Binance Stablecoin, is still in a difficult situation due to the claims of the U.S. Securities and Exchange Commission (SEC), demanding to register the token as a security. Paxos CEO Charles Cascarilla said he is in talks with the SEC and is ready to initiate legal action if necessary.

Stablecoins have gained recognition in the cryptocurrency market because they allow traders to get in and out of volatile cryptocurrencies such as bitcoin. They also act as a hedge against inflation.

Stablecoin transactions do not require bank settlements, which drag out the process for days and result in missed trading opportunities.

Perhaps that's why the growing stablcoin industry is under regulatory scrutiny, and the New York Department of Financial Services has forced Paxos to stop issuing BUSD.

The New York financial regulator also found that Paxos failed to conduct regular risk assessments and due diligence on Binance and customers holding BUSD.