SEC to Sue Crypto Trust Co. Paxos Over Binance Stablecoin: WSJ

Coindesk.com - SEC to Sue Crypto Trust Co. Paxos Over Binance Stablecoin: WSJ

TLDR:

The U.S. Securities and Exchange Commission (SEC) intends to sue stablecoin issuer Paxos, which is behind the USDP and BUSD tokens.

Spokespeople for Paxos did not immediately return requests for comment.

After Bloomberg reported that there were issues with how PBUSD's backing was displayed, Binance said on a blog post that "on occasion in the past, there was a timing mismatch in backing Binance-Peg BUSD with BUSD. BUSD is fully backed by USD cash and cash-equivalent reserves.

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EDIT1 - Just in: WSJ: Crypto Firm Paxos to Stop Issuing Dollar-Pegged Binance Token

other non paid article: Breaking: Paxos reportedly ordered to stop issuing Binance USD

BNB already taking the hit: BNB price on CMC

EDIT 2: u/TripTryad point out: CZ on Twitter a short time ago: "BUSD, even though called Binance USD, is NOT issued or redeemed by Binance."

https://twitter.com/cz_binance/status/1625054435532578816?cxt=HHwWgIC9qcaZrY0tAAAA

Heres the tweet storyline: https://twitter.com/cz_binance/status/1625067484368740353?cxt=HHwWgoCx3YuRs40tAAAA