The US SEC (Securities and Exchange Commission) is looking to file a lawsuit against crypto firm Paxos. Regulators have notified the firm that it is infringing on investor protection laws. The [Wall Street Journal said](https://www.wsj.com/articles/crypto-firm-paxos-faces-sec-lawsuit-over-binance-usd-token-8031e7a7?mod=latest_headlines) that the lawsuit relates to one of Paxos’ stablecoins, Binance USD (BUSD). 

The SEC believes that the stablecoin issuer has not registered its BUSD token as a security. It may be misleading for the investors and comes under violation of laws.

## SEC served Paxos a Wells Notice over BUSD

The financial watchdog has also served the stablecoin firm with a Wells Notice. The regulators serve this notice to warn that they may take enforcement action against the firm. 

After receiving the letter, firms usually have to respond within 30 days with a Wells Submission. The submission is a legal brief in which defendants can provide a counterargument. If the argument is valid, the charges can be dropped.

In the Binance USD case, it would be interesting to see how Paxos responds to the Wells Notice.

## What’s Binance's stance on the matter?

Cointelegraph [reported](https://cointelegraph.com/news/stablecoin-issuer-paxos-to-face-sec-lawsuit-over-binance-usd-report) that a spokesperson from Binance shared their views on the matter. The spokesperson says that “Paxos issued and owned" the BUSD token with Binance licensing. 
In addition, they said that the token is authorised and regulated by the Financial Services Department of New York. The token is registered as a "1 to 1 backed stablecoin".

The representative said that stablecoins offer various use cases for investors by protecting them from volatility. They also believed that a lawsuit against BUSD would restrict millions of investors from accessing it. However, the spokesperson assured that Binance is currently closely monitoring the situation.

SEC recently released its annual plan for crypto regularisation in the US. It also [charged the Kraken exchange](/news/article/crypto-tumbles-as-kraken-suspends-staking) for offering securities. This means the SEC is looking to intensify its operations for crypto enforcement.


red iamge of BUSD tokens and Paxos logo floating around

BUSD Probe of Paxos Planned by SEC

GALA is the native utility token of Gala Games and can be converted to BUSD.
Gala Games is a blockchain-based gaming platform that sees the creation of play-to-earn blockchain games. The platform is built on the Ethereum and Binance Smart Chain and also works with the Polygon network.

## GALA tokens

Before we look at GALA BUSD conversion, let's understand the Gala Games token. They are BEP20 and ERC20 compatible. They have several use cases. They can be used to purchase in-game items or NFTs, as a medium of exchange, and to make peer-to-peer payments. They are also used to incentivize players. The most active players get awarded the tokens.

The tokens are currently trading at $0.04502, according to [Coinmarketcap](https://coinmarketcap.com/currencies/gala/). They are ranked the 129th largest cryptocurrencies, with a live market cap of $184,029,951.

The tokens have a max supply cap of 35 billion. They are, however, deflationary tokens. On 21 July each year, their distribution is halved. There are currently 6,977,205,436 in public circulation.

17,123,286 of the tokens are distributed on the network daily. Half of them are distributed to Founder's Node operators, and the other half is given to the conservatorship. 
 
They can be bought on several crypto exchanges, including [Binance](/news/article/guide-to-binance-uk), Bitrue, and OKX. They can also be earned by playing the games on the platform, inviting new users, staking, and owning a node. Nodes offer computational resources to the platform’s decentralized network in exchange for rewards.

## GALA BUSD

BUSD, or Binance USD, is a fiat-backed Stablecoin developed by Binance and Paxos. It is backed by the US dollar with a ratio of 1:1. Like Gala, it is also an ERC-20 and BEP-20 token.

The stablecoin is currently ranked the 6th largest cryptocurrency with a live market cap of $21,997,255,977. Its market demand has grown exponentially, given that by the end of 2021, its market cap was close to 15 billion.

GALA BUSD conversion happens at a ratio of 1:0.024372 BUSD. You can, for example, get 0.048685 BUSD for two of the tokens at the current exchange rate.

## GALA BUSD price history

The tokens first hit the crypto market in September 2020. They were first listed on [Coinmarketcap](https://coinmarketcap.com/currencies/gala/historical-data/) on 18 September at $0.001437. For most of the months to December, they traded below $0.001. However, they ended the year worth $0.001442.

The best month was November 2021. They began the month worth $0.09104 and by mid-month were priced at $0.1268. By 17 November, they were worth $0.2305 and three days later were at $0.3529. On 28 November, they reached their highest recorded price of the year, $0.7121.

They began 2022 worth $0.4515. Things would quickly take a turn as they started to depreciate, ending the month priced at $0.19.

They picked up in February, ending the month worth $0.2604. There weren't any significant price changes until May, when they dropped to trading below $0.1. They would continue to trade below $0.1 till the time of writing.

## GALA BUSD prediction

Several crypto prediction platforms predict a promising future for GALA tokens. They view the coins as a good long-term investment option.

Cryptopolitan predicts they might trade at a maximum price of $0.054 in 2023, $0.076 in 2024, $0.12 in 2025, and $0.17 in 2026. Those holding the coins a little longer might see a maximum price of $1.10 by 2031, according to the site.

Changelly predicts they might trade at an average price of $0.056 in 2024, around $0.081 in 2025, $0.12 in 2026, and $0.2 in 2027. They will, however, not get to trading above $1 even by 2031, according to the site.

WalletInvestor predicts the coins might begin the year 2023 trading at a maximum price of $0.00393 and end the year priced at $0.00529. In 2024 they might trade at a maximum value of $0.00540 and end the year priced at $0.007029.
According to the site, things are poised to get even worse for the coin. By the end of 2027, they might be trading at a maximum price of $0.00033.

## Developments

It is worth noting that in November 2022 Gala Games was all over the news after it was reported that it had been hacked. A suspected attacker had supposedly minted $2 billion worth of GALA on the BNB smart chain and proceeded to dump some of the tokens on PancakeSwap.

The company assured its community that the incident was just a procedure to test its vulnerabilities and that it had not been hacked.

## Conclusion

GALA might look like a struggling cryptocurrency, but according to a few crypto prediction platforms, it might be a good long-term investment option.

The token has the potential to get back to its glory days or even get better. However, you'll have to hold on to it for a little longer to reap the expected bountiful results.



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