Paxos Reiterates Commitment to Regulation, Ends Binance Relationship

  • In the message, he talks about the company’s commitment to regulations.
  • He declared the company’s decision to halt further relations with Binance.

Charles Cascarilla, the CEO and co-founder of the regulated blockchain infrastructure platform, Paxos Trust Company reiterated the company’s commitment to regulation, resolving the ambiguities and anxieties among the community regarding the Securities and Exchange Commission’s (SEC) investigation on Paxos, reported a week before.

On February 21, Paxos Trust Company released a message that Cascarilla shared with the Paxos team, in which he stressed the company’s updated status on regulation and BUSD minting.

Notably, Cascarilla affirmed that Paxos would continue to “invest in setting the standard as a regulated blockchain infrastructure provider”, resolving the ambiguities and anxieties among the community. Cascarilla added that Paxos firmly believes that “thoughtful regulation” is necessary, stating:

I know recent news may feel deflating knowing all of the effort and resources we have dedicated to compliance and regulation over the past decade. However, our conviction that thoughtful regulation will unlock positive societal-wide outcomes is unwavering.

As per his words, the company has been working with the SEC in connection with the publication of its Clearing Agency application. Also, it has also been peering with the Office of the Comptroller of the Currency (OOC) for helping with its conditional approval to be an operationalized and launched National Trust.

Meanwhile, the CEO also shared the company’s “unequivocal” belief that Binance USD (BUSD) is not a security, as opposed to the convictions of the SEC.

Moreover, Cascarilla echoed Paxos’ decision to withdraw its ties with the leading crypto exchange Binance, commenting:

The market has evolved and the Binance relationship no longer aligns with our current strategic priorities. We announced on Monday that we’re ending the relationship with Binance. Paxos’ decision was separate from the Wells Notice and the DFS directive. We believe this decision best positions Paxos to achieve our mission.

While concluding, Cascarilla assured that the company’s goal is to “create an open financial system where anyone can get any asset at any time in a trustworthy way”. He also incorporated the updates of the $2.8 billion BUSD redemptions that the company has facilitated a while after halting the minting.

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