According to reports, the Securities and Exchange Commission has already informed Paxos Trust Co., that it plans to sue the stablecoin foreign investor for violating the investor protection law, involving its Binance investors. (BU.S.) Tokens.

SEC has sent a Wells Fargo notice to Paxos, which regulators use to inform the company of planned enforcement actions, the Wall Street Journal reported on Feb. 12, citing people familiar with the matter.

According to people familiar with the matter, the notice said that Binance. It's an unregistered security.

According to Investopedia, after receiving the news from Boss, the defendant had 30 days to clarify the facts of the notice according to a legal and regulatory newsletter submitted by Boss, which was an opportunity to argue why the potential defendant should not be explicitly charged.

A spokesman for SEC told Cointelegraph that it "will not post or post anything that is likely to investigate and analyze."

A spokesman for Binance said that Binance is "a product sold and owned by Paxos" and that Binance has licensed its trademark to the company and BU.S. Use it together with the company.

Parksos is controlled by the New York City Department of Financial Information Services, and the Australian dollar is a "smooth loan currency encouraged by 1: 1," the spokesman added.

Binance's this means that "a stable currency is a critical safety net for investors looking to avoid disasters in volatile markets, and limiting his access will directly harm tens of millions of people around the world." "people will continue to monitor the situation," he said. Our own customers around the world have a lot of smooth coding that they can apply. "

Cointelegraph contacted Paxos for comment, but didn't immediately get a response.

Paxos is BU.S. Since the company entered into a strategic partnership with Binance in September 2019, there has been a steady bond backed by US dollars. This is the third largest stabilization fund, with a total market capitalization of more than US $16 billion at this stage.

Paxos is the founder of Paxos Dollar (USDP) stablecoin, which launched in 2018, and is the driving force behind the digital asset exchange itBit. In 2012, Paxos and Paxos launched itBit at the same time.

On Feb. 12, Ford Fox Business Services TV reporter Eleanor Trent tweeted that the move was a "unilateral action" of the Blitzkrieg login password by the Securities and Exchange Commission and other regulators. She announced that a large number of notices about Wells Fargo's work would be pushed in the coming weeks.

According to reports, the move is the latest measure released by SEC that seems to crack down on login passwords.

Related: CoinbaseCEO indicated that Coinbase will defend the bet in the United States people's Court.

On Feb. 9, regulators announced a $30 million settlement with Kraken, a login password trading center, mainly because Kraken could not apply to register its login password betting program, which SEC called a security. After this act, Gamo Gensler, the current chairman of SEC, warned the company to log in to password to "enter and abide by the Constitution".

SEC has been criticized by ordinary people in the country for his actions against Kraken. On February 10th Hester Pierce, the SEC committee, made it clear that SEC's move was "not a reasonable or fair regulatory tool", criticizing her agency for shutting down a "new project that serves the people better".

It was also reported last week that Paxos was conducting a NYDFS investigation and analysis. However, the exact motivation behind the survey is not clear at this stage.

This article was published in 2008.At 2:00 in the morning on February 13th, UTC plus the reply from a spokesman for Binance, around 11:45UTC will increase the response from a spokesman for SEC.