Paxos Meeting With SEC for a “Constructive Discussion”

Joshua Ramos
Charles Cascarilla, chief executive officer of Paxos, listens during the Bitcoin 2021 conference in Miami, Florida, U.S., on Saturday, June 5, 2021. The biggest Bitcoin event in the world brings a sold-out crowd of 12,000 attendees and thousands more to Miami for a two-day conference. Photographer: Eva Marie Uzcategui/Bloomberg

Just a week after being issued a Wells Notice from the regulator, stablecoin issuer Paxos is meeting with the US Securities and Exchange Commission (SEC) for a “constructive discussion,” according to Reuters. Specifically, Paxos CEO Charles Cascarilla told employees of the continued dialogue.

The development comes after a Wells Notice was issued by the regulatory body. The notice is used by the SEC to alert companies of potential securities violations that could precede legal action by the regulator. Now, internal emails reveal that discussions between the two entities are ongoing.

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Source: Bloomberg

Paxos and SEC Seeking a Way Forward

The past few weeks have seen the entire cryptocurrency industry experience a much tougher regulatory agency. Subsequently, the US market has seen the SEC crackdown on various potential securities violations. Including action already taken against Kraken, and Paxos.

Conversely, the latter is now seeking to potentially engage in positive discourse with the regulators via an internal email. Reuters reported that stablecoin issuer Paxos is meeting with the SEC for “constructive discussions,” following last week’s Wells Notice Issuance.

Source: Coindesk

Specifically, Paxos CEO Charles Cascarilla told employees in an internal memo about the meeting. “We are engaged in constructive discussions with the SEC, and we look forwarded to continuing that dialogue in private,” he told employees.

Moreover, Cascarilla told employees that, if necessary, it would opt for litigation in defense of the Binance USD claims. Alternatively, an SEC spokesperson has yet to comment on the potential meeting and what discussions could take place. Additionally, the Wells Notice urged Paxos to stop issuing the Binance stablecoin, which had been the third biggest in the market.