Binance's BNB token has fallen by around 6% in response to reports that the US Securities and Exchange Commission (SEC) has claims against the BUSD stablecoin and its issuer Paxos.
The Wall Street Journal earlier wrote that the SEC plans to take legal action against Paxos in connection with the issuance of the Binance USD (BUSD) stablecoin.
Changpeng Zhao, the creator and head of Binance, stressed that Paxos is independently responsible for issuing the stablecoin. Binance assured that the currency is fully supported by reserves.
Regarding the claims of the regulator claiming unregistered securities in the form of BUSD, Zhao noted analyst Miles Ducher's opinion that there was no hope of profit when investors bought the dollar-linked coin.
It is noted that PayPal suspended its own stablecoin project after news broke that the New York State Department of Financial Services (NYDFS) was investigating Paxos as a BUSD issuer.
