Web3 Lawyer Says SEC Move Towards Paxos and BUSD is Standing Adage

SNEAK PEEK:

• The SEC`s move towards Paxos and BUSD stablecoin has been questioned by many.
• The SEC seized Paxos from producing the Binance USD stablecoin.
• Binance CEO told BUSD users that their funds are in safe hands.

Mike Selig, a crypto and web3 lawyer at Willkie Farr, remarked in a recent interview with crypto journalist Laura Shin that the crypto market is very difficult for investors to navigate without clear guidelines.

😵‍💫 “It’s really hard to navigate without any clear rules,” says crypto lawyer @MikeSeligEsq. 🙈

The SEC’s move against Paxos & BUSD is another example of a long-standing adage in crypto.

Watch now: https://t.co/BQ7cXN3xJV pic.twitter.com/Z0DplTdzLp

— Laura Shin (@laurashin) February 17, 2023

Mike believes that the recent action taken by the Securities and Exchange Commission (SEC) against Paxos and Binance USD (BUSD) is an illustration of a crypto industry maxim that has been around for quite some time.

In the interview, the crypto and web3 lawyer claimed that the SEC was looking into certain other issues that fall under the definition of security and that some of the acts in the cryptocurrency market are considered to be rug pulls because these coins have been supplied.

This comes after the U.S SEC took to action in suing the crypto exchange Paxos Trust Company and seized it from producing the Binance USD stablecoin that the firm had partnered with Binance to produce. According to reports by Investor Bites, one of the trusted media houses, Paxos was sized from producing the Algarithim because SEC was accused of producing securities that were unregistered.

“None of these stablecoins actually seem like that unless they’re paying out some set rate of interest, or even a floating interest,” says the former Commodities Futures Trading Commission (CFTC) law clerk.
On the same note, despite the fact that the U.S. SEC and New York authorities have ordered Paxos, the stablecoin’s issuer, to cease minting the cryptocurrency,the CEO of Binance, Changpeng “CZ” Zhao, has said that the exchange would continue to support BUSD. The CEO has also assured users that funds are safe despite the intended enforcement action.