Paxos engaged in 'constructive discussions' with U.S. SEC over Binance stablecoin- internal email

(Reuters) - The firm behind Binance's stablecoin, Paxos Trust Company, is having constructive discussions with the U.S. Securities and Exchange Commission after the firm disclosed that the regulator told the company it should have registered the token as a security, according to an internal email from Paxos' chief executive officer.

"We are engaged in constructive discussions with the SEC, and we look forward to continuing that dialogue in private," said Paxos CEO Charles Cascarilla in an email sent Saturday to Paxos employees.

He added that if necessary, Paxos would defend its position that Binance USD is not a security through litigation.

(Reporting by Hannah Lang in Washington)