Paxos, a leading regulated blockchain and tokenization infrastructure platform, has responded to the U.S. Securities and Exchange Commission over its issuance of Binance USD “BUSD” stablecoin.

In a Jan 13 blog, Paxos refuted claims by the SEC that BUSD is a security under federal securities laws. The response by Paxos comes after the SEC sent a Wells Notice to the firm earlier this month stating that it was considering recommending an action alleging that “BUSD is a security and that Paxos should have registered the offering of BUSD under the federal securities laws.”

According to Paxos, since the SEC Well notice pertained only to BUSD and there were no other allegations against it, it was ready to prove that BUSD was not a security.“Paxos has always prioritized the safety of its customers’ assets…We will engage with the SEC staff on this issue and are prepared to vigorously litigate if necessary,” the firm wrote.