The stable coin of the Binance brand, Binance currency. (BU.S.), is a US dollar-encouraged stable coin publicly issued through blockchain infrastructure service platform Paxos Trust Company. It is the third largest stable currency after Tether's (USDT) and Circle (USDC).

Parksos has previously claimed that all reserves held by cash or US Treasuries are applicable to the dollar by law. It is reported that Pasteur is authorized by the Financial Service Center of New York State (NYDFS).

Paxos launched stablecoin in 2019 in collaboration with Binance, a login password trading center, and was approved by NYDFS. Zhao Changpeng, BinanceCEO, once said that the trading center licensed the Binance brand to Paxos, while US $B was wholly owned and managed by Paxos.

But on February 12th the American Securities Trading Federation (SEC) issued a Wells Fargo notice to the Paxos-a letter used by regulators to inform companies of planned enforcement actions. The notice said that the exchange rate of Billar against the dollar is an unregistered security. After receiving the news from Boss, the defendant had 30 days to clarify the facts according to a newsletter of laws and regulations submitted by Boss-an opportunity to argue why potential defendants should not be sued.

A day later, the New York City Financial Information Services Management Office ordered Parksos to stop production and make a new dollar because Parksos had a practical problem with the regulation of its relationship with the Binance over the dollar. As a result of regulatory verification, Paxos then decided to disconnect from Binance, saying that they were working with SEC to address the issue as a whole.

On the other hand, Binance told Cointelegraph that he expected SEC to avoid BU.S. When it comes to law enforcement:

It is expected that it is not easy for the American Securities Trading Association to mention law enforcement on this topic. There is neither factual basis nor legal stipulation to do so. In addition, this will destroy the growth and innovation of US financial technology units.

Paxos declined to comment on the conundrum because talks with SEC were ongoing. The company marked Cointelegraph to inquire about an internal structure email, and Paxos founder Cliff Kaskalubi strictly adhered to his earlier position that the dollar is not a security.

Casca Ruby's statement stressed that in the United States, the precedent used to identify securities is called Howey evaluation and Reves testing. He pointed out that BYD cars do not meet the requirements of turning into securities:

Our own stable investments have always been applied by cash equivalents-- dollars and U.S. Treasuries-- but have never been securities. We are having an innovative discussion with SEC and we are looking forward to having a private dialogue again. Naturally, if necessary, we will defend our views in litigation. We will share other information in the context of something meaningful.

Tether, a publisher of large stable bonds with a large market capitalization, did not directly respond to the actual problem that smooth bonds were classified as securities. However, a spokesman for the company told Cointelegraph, "Tether has a good relationship with international law enforcement agencies and is committed to operating safely and transparently in compliance with all applicable laws and regulations."

Is the smooth fish at the core, or is there a higher fish to fry?

Many members of the password community are confused about BYD's security accusations and see law enforcement actions against it. This is mainly because the dollar is "stable", maintaining a 1:1 peg with the US dollar, limiting its use for speculation.

Just days after the SEC took action against the dollar, there were rumors that similar Wells Fargo notices would be sent to other stablecoin foreign investors, including Circle and Tether. Dante Disparte, chief strategy officer of Circle, calmed down the rumors and said foreign investors in the stable currency had not received such documents.

Earlier that month, some experts and scholars interviewed by Cointelegraph explained how smooth bonds are called securities. Aaron Lane, a senior teacher at the RMIT blockchain Industrial Innovation Center, says that while stable currencies should be relatively stable, customers may benefit from a variety of hedging, hedging and betting opportunities.

He further explained that although the answer is not obvious, it can confirm that stable returns are for making money, or derivatives of securities.

Some members of the password community have indicated that this situation is likely to be not only a stable currency problem, but also a Binance problem, indicating that SEC has not taken action on the stable currency Pax Gold encouraged by Paxos gold.

Carol Gofus, a university teacher and professor of law at Clayton N Little at the University of Arkansas, told Cointelegraph that the situation is likely to be more important about Binance than about the stable itself:

Because of its association and association with Binance, this particular encryption asset has a unique challenge. Some of these unusual features may be the focus of SEC's attention, but some of the main reasons are the lack of transparency and accuracy of the information reported.

Gofus added that the price of stablecoin is designed to be relatively stable, which seems to be the opposite of earnings estimates.

Even so, Gofus said: "I can see an implicit argument that stable currencies enable efficient trading of other forms of data encryption, which is, in fact, the main use of stable currencies so far, compared with the total market capitalization." its trading volume is too big. "

"it can be said that 'profit' includes the additional meaning gained from the ability to carry out this kind of trading, although it seems a little pale. Profit estimates are crucial because they are one of the elements of the Howey project investment contract test.

Weeks after taking enforcement action against its BYD car, SEC submitted a resolution forbidding Binance.US to reclaim the property of the failed password credit company Voyager Digital for $1 billion. The SEC stressed that Voyager's publicly issued dynamic password (VGX) could be sold, which could constitute an unfiled securities offer commitment or sale under federal law.

The series of enforcement actions adopted by the SEC in all areas of the Binance business have convinced many that the regulator is targeting trading centres, not stable currencies.

The territorial jurisdiction of SEC is in doubt

With the growth of law enforcement in the login password market, the regional jurisdiction of SEC has also been called into question, especially at the level of smooth trading. In a recent interview, USDC Issuer CircleCEO Jeremy Alisle (Jeremy Allaire) made it clear that "smooth payment" is a payment platform, not a security.

Allaire made up a lie that SEC was not an appropriate regulator for Stablecoins, and said: "governments around the world, including the US, have determined that payment Stablecoins is a payment platform and banking regulatory theme activity for a reason."

Coinbase, the first login password trading center for Nasdaq, is fighting a securities war that is not so much about chip commodities. It also suspects that the SEC has moved into stable bonds and claims that they are securities decisions.

2022 was a disastrous year for login password companies, with the valuation of most login password assets falling by more than 70% from industry highs. In addition to the severe winter of login passwords, the collapse of login password borrowers, trading centers and asset funds has become a more important concern. Many people then suspect that regulators have failed to ensure the safety of investors and implement regulatory regulations. In 2023, the situation reversed, and regulators went to great lengths to crack down on login password companies. However, his method and intention are now under suspicion because they have already carried out the act.