Paxos Trust Co. has been warned by the United States Securities and Exchange Commission (SEC) that the SEC intends to sue the business for breaking investor protection rules. The SEC's continued effort to enforce regulations in the cryptocurrency industry is reflected in this action.
Wells Notice Issued to Paxos
Paxos has received a Wells notice from the SEC's enforcement team, which is a letter used to notify organisations and people of potential enforcement action. An unregistered security, according to the notice, is Binance USD, a digital asset created and listed by Paxos.
It is still unknown why the warning was sent out, and whether it had anything to do with the coin's issuance or listing. Companies that get Wells letters have the chance to write back and explain why the SEC shouldn't file a lawsuit.
Binance coin Freefall
A spokesman for Binance stated on Monday that BNB, the company's cryptocurrency, fell 5% after the New York Department of Financial Services ordered Paxos Trust to halt producing more of its BUSD token.
The news that circulating that the New York Department of Financial Services has been told to cease minting new BUSD tokens has created FUD in BNB community. The BUSD token was trading just below parity on Monday, according to Coinmarketcap.
BNB is down by roughly 6% on a daily scale and trades well beneath $300.
Latest Updates !
BNB coin uses an Auto-Burn system to reduce its total supply to 100,000,000 BNB. The BNB Auto-Burn mechanism adjusts the amount of BNB to be burned based on BNB’s price and the number of blocks generated on BNB Smart Chain (BSC) during the adjusted time period.
The latest Tweet by Binance Coin states, 'All thanks to popular demand, the latest #BinanceBuild update is here! You can customise your #Binance referral code as many times as you want 🤝'
The second latest Tweet by Binance Coin states, '#Binance Liquid Swap launches ARPA/USDT Liquidity Pool with $ARPA & #BNB Combo Rewards! Find out more below.'
If the upgrades of the network manage to push the price action. Then we can expect the Binance coin price prediction to rally to $340.65 by the end of 2023 as per coinpedia.
