CZ of Coin Security Defends BUSD against SEC’s Lawsuit
According to reports, in response to the fact that the United States Securities and Exchange Commission marked BUSD as \”unregistered securities\” and sued its i…
According to reports, in response to the fact that the United States Securities and Exchange Commission marked BUSD as “unregistered securities” and sued its issuer Paxos, CZ, the chief executive officer of Coin Security, responded on social media: “Although BUSD is called Binance USD, it is not issued or redeemed by Coin Security.”
CZ responded to the “Paxos event”: BUSD was not issued or redeemed by Coin
Interpretation of the news:
Recently, the United States Securities and Exchange Commission (SEC) marked BUSD as an “unregistered security” and sued its issuer Paxos. However, CZ, the CEO of Coin Security, has responded on social media, clearing up the confusion about their relationship to BUSD. CZ stated that “Although BUSD is called Binance USD, it is not issued or redeemed by Coin Security.”
This statement from CZ is important as it clarifies the role of BUSD in Coin Security’s operations while also presenting a defense against the SEC’s accusation. It appears that Coin Security is distancing itself from any potential legal disputes concerning the regulation of BUSD. This may be seen as a safe approach to adopt considering the current legal situation surrounding the cryptocurrency sphere.
Coin Security is one of the leading cryptocurrency exchange platforms in the world that has been expanding its operations globally since its establishment. BUSD, on the other hand, is a stablecoin created by Paxos Trust Company, which is pegged to the US dollar. The stablecoin was launched in partnership with Coin Security in September 2019, as Coin Security was one of the initial exchanges to offer BUSD.
The SEC has expressed concerns about the increase of stablecoins in the market, stating that they could be considered securities and, therefore, should comply with the relevant registration requirements. The lawsuit filed against Paxos highlights the regulatory pressure the cryptocurrency industry is facing.
In conclusion, CZ’s statement regarding BUSD and Coin Security’s relationship clarifies the role of BUSD in their business activities, while also indicating that they are distancing themselves from legal disputes. The lawsuit against Paxos serves as a reminder for the cryptocurrency industry to remain compliant with regulatory requirements. It is essential for companies to be transparent in their operations and collaborations to avoid any legal complications.
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