Paxos Reaffirms Regulatory Commitment and Ends Binance Partnership

Commitment to Regulation

Paxos Trust Company, under the leadership of CEO Charles Cascarilla, has reaffirmed its dedication to regulatory compliance amidst an ongoing Securities and Exchange Commission (SEC) investigation. The company is committed to maintaining its status as a regulated blockchain infrastructure provider, emphasizing the importance of "thoughtful regulation" for achieving positive outcomes across society. Cascarilla highlighted the company's efforts in working with both the SEC and the Office of the Comptroller of the Currency to align with regulatory standards.

Ending Relationship with Binance

In a strategic move, Paxos has decided to terminate its partnership with Binance, a leading cryptocurrency exchange. This decision is based on the evolving market dynamics and a reassessment of strategic priorities, rather than external pressures or regulatory directives. Paxos maintains that this separation positions the company to better achieve its mission of creating a reliable and accessible financial system.

BUSD and Compliance

Despite the SEC's stance, Paxos holds a firm belief that Binance USD (BUSD) does not qualify as a security. The company has facilitated $2.8 billion in BUSD redemptions following its decision to halt the minting process, reflecting its ongoing commitment to transparency and regulatory adherence.

Future Outlook

Paxos remains focused on its mission to establish an open financial system, enabling seamless access to assets. The company continues to address community concerns and regulatory challenges while actively engaging with relevant authorities to ensure compliance and trustworthiness in its operations.