According to reports, the Financial Services Center of New York State (New York State Department of Financial Services, commonly known as NYDFS) received a complaint from Circle, a Stablecoin publisher, about the risk reserve of Binance before Binance cracked down on the US dollar.

According to Bloomberg News on Feb. 13, Circle reported in a complaint in the fall of 2022 that NYDFS,Binance 's reserves could not support its tokens and appeared to contain relatively stable Binance dollars (BU.S.). According to a representative of a person familiar with the matter, the Circle team saw the data based on the blockchain data.

Circle's action was taken before the American Securities and Exchange Federation program filed a lawsuit against Paxos, claiming that BU.S. It's an unregistered security. NYDFS announced its regulatory actions on February 13, instructing Paxos to "stop issuing US dollars publicly issued by Paxos" and strictly enforce the rule that all tokens in its rules and regulations must be encouraged by cash or quasi-currency.

In a statement replying to SEC's suit on Feb. 13, Parksos stated that BYD's exchange rate against the dollar was "not a security under the federal securities law," adding:

The Australian dollar issued by Paxos insists on being applicable at 1:1 and has US dollar-denominated reserves that are thoroughly protected from being deposited in closed remote control accounts. You will contact the relevant staff of the Securities and Exchange Federation on this issue and are prepared to take the initiative to file a lawsuit if necessary. "

This is also the latest login password control behavior released by a company that endangers the login password in the United States. previously, the Securities and Exchange Federation reached an agreement with the Kraken on February 9 to terminate the bargaining service program for American customers. Financial regulators will continue to sue Ripple over XRP, claiming that the tokens are securities under their jurisdiction.