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CZ Responds to SEC’s Ruling on BUSD

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According to reports, in response to the fact that the United States Securities

CZ Responds to SECs Ruling on BUSD

According to reports, in response to the fact that the United States Securities and Exchange Commission marked BUSD as “unregistered securities” and sued its issuer Paxos, CZ, the chief executive officer of Coin Security, responded on social media: “Although BUSD is called Binance USD, it is not issued or redeemed by Coin Security.”

CZ responded to the “Paxos event”: BUSD was not issued or redeemed by Coin

Interpretation of the news:


The recent announcement by the United States Securities and Exchange Commission (SEC) on marking BUSD as unregistered securities has caused quite a stir in the crypto community. In response, CZ, the chief executive officer of Coin Security, took to social media to clear the air.

According to reports, CZ emphasized that BUSD is not issued or redeemed by Coin Security, despite being called Binance USD. BUSD is an ERC-20 stablecoin issued by Paxos, a regulated financial institution. CZ’s statement was aimed at clarifying that Coin Security, the parent company of Binance, has no control over BUSD’s issuance and transactions on the blockchain.

The SEC’s move on BUSD is part of the regulatory body’s ongoing crackdown on cryptocurrencies and initial coin offerings (ICOs) that do not comply with securities laws. The regulatory body’s decision to classify BUSD as unregistered securities implies that the stablecoin is a security, and its issuance and trading must comply with securities laws.

BUSD’s classification as a security may cause concern in the crypto community, but it is noteworthy that Paxos, the issuer of the stablecoin, is a regulated financial institution. According to reports, Paxos is licensed by the New York State Department of Financial Services and regularly audited by a top auditing firm.

In the face of the SEC’s ruling, CZ’s response indicates Coin Security’s compliance with regulatory standards. It is crucial for cryptocurrency exchanges and issuers to have robust regulatory frameworks to ensure investor protection and prevent fraudulent activities.

In conclusion, CZ’s statement on BUSD highlights the need for regulatory compliance and clarifies the role of Coin Security in BUSD’s issuance and transactions. The SEC’s classification of BUSD as unregistered securities may create ripple effects in the crypto community, but it also emphasizes the importance of complying with regulatory standards.

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