The last word hasn't been spoken here yet if I understand correctly that Paxos has 30 days to respond and convince
the SEC otherwise.
What I find a bit odd is that BUSD gets targeted first. What about Tether and USDC? This may just be the beginning of a wave of lawsuits against stable coin providers. I do get Armstrong's point that attacking regulated stable coin providers will only lead to people using offshore services, thereby increasing overall risk.
I believe all stable coins are similar and should have the same limitations imposed by sec.
However, coinbase is a company which operates in US for nearly a decade, they also completed everything demanded by the law and regulations to be listed in the stock market. It is harder for the SEC to target their products.
On the other hand, binance operate in shadows in small countries...