According to reports, the New York City Financial Services Center (NYDFS) has ordered blockchain company Paxos Trust to stop issuing Binance dollars. (BU.S.) stablecoin.

Some time before UK regulators acted, the Foreign Securities Trading Federation (SEC) issued an oil and gas well notice to Paxos-a letter used by regulators to inform companies of planned enforcement actions. According to the notice, Binance. It's an unregistered security.

According to reports, the New York City Financial Information Service has already ordered Parksos to stop issuing more US dollar tokens. According to a statement from Binance, Paxos will continue to manage the method of redemption of the product.

The recent stringent regulatory action on the third most stable password was taken after the password sales market was subject to increasingly stringent inspections. SEC only announced last week that the password betting service violated securities laws, driving Kraken to shut down its bets altogether. Coinbase has waged this fight, claiming that its core bets are not securities.

The securities debate in the cryptographic market has existed for a long time, and it has been the focus since SEC filed a lawsuit against Ripple, the issuer behind the XRP (XRP) dynamic password. The case is inconclusive. Generally speaking, if you invest in an enterprise and expect to make a profit according to the diligence of people other than investors, it is called a kind of securities.

However, the security complaint against smooth passwords may pose an important test for the password industry, as smooth passwords are the first step for customers to enter the password and are an increasingly popular entrance. Cointelegraph contacted experts and scholars to understand how stable currencies have the opportunity to become securities. One lawyer said that while stable investments should be relatively stable, clients were likely to profit from a range of hedging arbitrage, hedging trades and bet opportunities.

Blockchain technologists told the Cointelegraph that although the answer was not established, there would be a reason to do so if the stable currency was established in the expectation of making money, or if it was a derivative of securities.