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The U.S. Securities and Exchange Commission (SEC) has called off its probe into stablecoin-issuer Paxos. This move signals a win for the crypto world. It suggests the regulator no longer views stablecoins as securities. Fortune broke the news. The decision could reshape the crypto landscape. It might influence how other digital assets are classified. Binance, however, urges caution. They released a statement saying, "This decision marks a significant development in the ongoing discussions surrounding the classification of digital assets." The crypto exchange added, "The SEC's decision to halt its investigation into PAXOS and its ruling on BUSD could potentially influence future regulatory decisions regarding other digital assets." But Binance isn't popping champagne just yet. They warned, "It is important to note that the SEC's decisions are subject to change and may not necessarily set a precedent for future cases." The SEC's about-face comes over a year after Paxos got a Wells Notice. That's bureaucrat-speak for "we're coming for you." Back in February 2023, Paxos spilled the beans. They said the SEC was "considering recommending an action alleging that BUSD is a security." The regulator thought Paxos should have registered BUSD under federal securities laws. Now, it seems they've had a change of heart. Which is just a phenomenal news for every fan of Paxos, and yes, there are so many of them in the crypto world. This decision could be a game-changer for the crypto industry. It might offer a breather to other stablecoin issuers who've been sweating bullets. But let's not get ahead of ourselves. The crypto world is as unpredictable as a cat on catnip. Today's victory could be tomorrow's headache. For now, Paxos can breathe easy. But in the wild west of crypto, who knows what's around the corner? One thing's for sure – this isn't the last we'll hear about stablecoins and securities.

Paxos, a leading stablecoin issuer, cuts 20% of workforce. That comes as a move to ‘de-prioritizing adjacencies’, the company says. According to Bloomberg report, the stablecoin firm is lessening its focus on non-core offerings. The staff cut eliminates 65 employees. As a result, Paxos’ headcount will stay somewhere between 200 and 300. Journalists were able to obtain an email sent by Paxos CEO Charles Cascarilla to the company staff. In that email Cascarilla explains that reduction will allow the company to “best execute on the massive opportunity ahead in tokenization and stablecoins.” Cascarilla predicts that “stablecoins will 10x in the coming years and serve as the fulcrum for opening the financial system through tokenization.“ The email is full of quite victorious statements. Paxos CEO mentions that the firm is “in a very strong financial position to succeed,” with more than $500 million on its balance sheet. At the same time, he claims that it is absolutely vital for Paxos to focus on its core business. He even uses a pretty vague term “de-prioritizing adjacencies.” Though Cascarilla is not precise about what that means, Bloomberg reporters claim Paxos is about to ditch some of its commodities and securities settlement services. That means Paxos will stay focused on stablecoins - the kind of activity that brought the company to its well deserved fame. Paxos has gained some pretty stark reputation for operating various stablecoin products. That includes Pax Dollar (USDP), which has a $135.9 million market cap, Pax Gold (PAXG), which has a $429.8 million market cap, and PayPal USD (PYUSD), which has a market cap of $398.8 million. Paxos still runs Binance USD (BUSD), that was halted by Binance in February 2023. BUSD still has a market cap of over $70.5 million. On a bright side, Paxos just announced the launch of a yield-bearing stablecoin called Lift Dollar (USDL). It will be operated through the company’s UAE-based affiliate - Paxos International.

Paxos International has announced the issuance of a regulated, interest-paying U.S. dollar-pegged stablecoin. The trick is that this new digital asset, named USDL, will not be available to users in the United States. USDL aims to stand out by not only being pegged to the U.S. dollar but also offering interest payments. This feature is expected to attract investors looking for both stability and yield in their digital assets. The interest-bearing aspect of USDL differentiates it from other stablecoins that typically do not offer returns on holdings. Paxos has emphasized that USDL will be fully regulated, ensuring transparency and trust for its users. By excluding the U.S. market, Paxos navigates the complex regulatory environment in the United States, focusing instead on international markets where demand for regulated stablecoins is growing. Paxos is known for issuing other significant digital assets. One of these is Pax Dollar (USDP), another stablecoin pegged to the U.S. dollar. USDP is designed to offer a stable value for transactions and holdings in the volatile crypto market. Paxos also issues Pax Gold (PAXG), a token backed by physical gold. Each PAXG token represents one fine troy ounce of a London Good Delivery gold bar, allowing investors to hold gold in a digital form.