Yesterday, this web3 company announced that it received a formal termination notice from the SEC on July 9th, 2024.
It states that no enforcement action will be recommended against Paxos Trust Company.
SEC Validates Paxos’ Compliance, No Enforcement Action
Charles Cascarilla, CEO & Co-Founder of Paxos, emphasized the company’s commitment to prioritizing the safety of customer assets. He noted that Paxos-issued stablecoins, including BUSD, are backed 1:1 with US dollar reserves, fully segregated. Also, stables held in bankruptcy-remote accounts. This stringent custody and reserve management framework distinguishes this platform as a leader in the industry. It ensures robust security measures for digital assets.
Cascarilla expressed confidence in Paxos’ approach, stating, “Paxos stands apart as the only issuer to secure regulatory oversight to introduce safe solutions that will drive significant innovation across the global financial system.” This regulatory clarity to compliance has been pivotal in Paxos’ ability to navigate regulatory scrutiny effectively.
Source: X
The conclusion of the SEC investigation signifies a significant milestone for this web3 company. It confirms the company’s regulatory compliance and transparency in managing stablecoins. The decision not to pursue enforcement action highlights Paxos’ compliance and strengthens its reputation in the crypto market.
Looking ahead, Paxos remains focused on advancing safe and innovative solutions within the global financial system. The company’s regulatory oversight and adherence to best practices in asset custody and management continue to set benchmarks for the industry, promoting stability and trust among stakeholders.
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