Author: Colin Wu Photo from Protos On the morning of February 13th, Beijing time, the Wall Street Journal reported that the US Securities and Exchange Commission (SEC) has informed crypto company Paxos that it plans to sue the company for violating investor protection laws. The notice stated that Paxos’ digital asset, Binance USD, which was issued and listed, is an unregistered security. Companies receiving a Wells notice can respond in writing and tell the SEC why the lawsuit should not proceed. The Wells notice is not a final indication that the SEC will take enforcement action. The agency’s five commissioners must vote to authorize any enforcement settlement or lawsuit. The SEC has not previously taken enforcement action against a major stablecoin issuer.