Crypto firm Paxos ordered to stop minting Binance dollar-pegged token as SEC's crackdown widens

• Paxos has been ordered by regulators to stop issuing Binance's dollar-pegged stablecoin.
• The crypto firm will stop minting BUSD next week, as it reportedly faces a lawsuit from the SEC.
• BUSD is the world's third largest stablecoin, but the SEC has called it an unregistered security, per WSJ.

Crypto firm Paxos has been ordered to halt issuing Binance's dollar-pegged coin, amid a wider regulatory crackdown that follows a reported lawsuit by the Securities and Exchange Commission (SEC).

A statement released on Paxos's website said it would cease issuance of the BUSD token form February 21, under guidance from the New York Department of Financial Services (NYDFS).