Paxos Slapped with $48.5M Fine by NY Regulators Over Binance USD Controversy

Paxos just coughed up $48.5 million to New York regulators—proof even stablecoin issuers aren't immune to regulatory shakedowns.

The settlement? A stark reminder that crypto's 'wild west' era is over. Regulators now have stablecoins in their crosshairs, and no one—not even Binance's favored dollar-pegged token—gets a free pass.

Funny how a 'stable' asset still managed to create so much volatility for Paxos' balance sheet. Maybe next time they'll stick to printing Monopoly money instead.

Regulatory changes in the U.S. went in Paxos’ favor

The settlement with New York authorities comes amid a shift in the regulatory environment surrounding crypto in the U.S. Since the inauguration of President Donald Trump, top regulators have changed their approach to enforcement of crypto policy.

This includes the SEC, now under a Trump-appointed, pro-crypto Chairman Paul Atkins. In July 2024, the SEC ended its investigation into Paxos over the BUSD stablecoin.