Breaking: SEC Opens Investigation Into Paxos, Verifies Non-Security Status of Stablecoins

Posted by cryptonews Crypto News July 11, 2024 2.3k Views

The SEC just dropped its probe into crypto firm Paxos over its BUSD stablecoin one year after issuing a Wells Notice to the firm, per a Fortune report.

The announcement is being greeted as a huge victory for the cryptocurrency market.

This is because it has been unclear whether stablecoins would be considered securities in the US following the SEC’s Wells Notice to Paxos a year ago.

Furthermore, it seems unlikely that stablecoins will be treated as securities in the US based on the SEC’s decision to end its Paxos investigation.

SEC Drops Probe Into Paxos – End of Anti-Crypto Era?

Another indication that US policymakers’ anti-crypto stance is softening is the SEC’s decision to rescind its investigation into Paxos’ BUSD stablecoin.

In 2023, the SEC launched a vigorous enforcement and regulation campaign against the cryptocurrency industry.

The main thesis is that since most cryptocurrencies are securities, they ought to be governed as such.

The goal, according to the SEC’s detractors, was to create chaos and fear within the cryptocurrency industry, possibly even bringing it to its demise.

However, this policy stance has begun to change as of 2024. Ethereum had been the target of an SEC campaign to classify it as a security.

However, it abruptly reversed course a few months ago and approved Ethereum ETFs.

It is anticipated that these ETFs will debut before the end of the month.

Politics may have an impact on the SEC’s evolving position. In recent months, Republican presidential candidate Trump has come out as a fervent supporter of cryptocurrency.

Democrats have been compelled by this to soften their anti-crypto stance. And that might be forcing the anti-crypto SEC to adjust its behavior toward the sector.

Even in the unlikely event that Trump wins reelection, a new SEC is expected.

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