Paxos CEO: applying for bank license to OCC, which has led to the redemption of more than US $2.8 billion BUSD and has not disturbed the encryption market

It is reported that Charles Cascarilla, CEO of Paxos, raised an objection to the unilateral “Wells Notice” issued by the Securities and Exchange Commission of the United States, which said that BUSD was a kind of security, and pointed out that according to the Howey test and the Reves test, BUSD did not meet the security standards, because the stable currency was always supported by cash and equivalents (such as US dollars and US bonds), He also said that Paxos had so far contributed more than US $2.8 billion in BUSD redemptions and did not disrupt the encryption market. In the future, it may “defend its litigation status” and will “actively file a lawsuit against the Securities and Exchange Commission when necessary”. In addition, Charles Cascarilla revealed that Paxos was applying to the United States Office of the Comptroller of the Currency (OCC) to obtain a banking license. （CryptoSlate）

Interpretation of this information:

The CEO of Paxos, Charles Cascarilla, has objected to the Securities and Exchange Commission’s (SEC) “Wells Notice,” which classifies BUSD as a security. Cascarilla cited the Howey Test and the Reves Test, stating that BUSD does not meet the standards of a security since it is backed by cash and equivalents. Paxos has redeemed over $2.8 billion in BUSD without disrupting the cryptocurrency market. Cascarilla has stated that Paxos may “defend its litigation status” and “actively file a lawsuit against the SEC when necessary.” Additionally, Paxos has applied to the Office of the Comptroller of the Currency for a banking license.