The US Securities and Exchange Commission has completed its investigation into PayPal’s dollar -backed stablecoin, PayPal USD (PYUSD), without taking enforcement measures and completing a legislative chapter that began more than a year ago, the company said.
“In November 2023, we received a subpoena from the US SEC department for enforcement of PayPal USD -StableCoin. The subpoena requested the production of documents. In February 2025, SEC communicated that it closed this query without enforcement action,” PayPal revealed this week in an archiving.
Wednesday’s filing marks the latest SEC step to drop investigations and lawsuits against cryptic companies. The regulator has informed more than a dozen companies that it would drop investigations and cases.
Read more: Paypal is facing SEC -Type over its PYUSD -stableCoin
StableCOin – Digital tokens tied to Fiat currencies like the US dollar – has become a rallying point in the debate on how crypto should be regulated. Supervisors have questioned whether these instruments are similar to securities or money market funds that can draw issuers such as circle and TOTHER for greater control. PayPal’s commitment attracted extra attention because of its size, fire recognition and range across traditional and digital funding.
For PayPal, the resolution of the SECS probe removes an important regulatory overhang as it continues to push deeper into blockchain-based payments. The company launched Pyusd at Ethereum in August 2023 as a dollar-pegged stablecoin supported by short-term US Treasury and Dollar deposits, designed for use in peer-to-peer payments, trade and decentralized applications.
The news is also coming at a time when stableecoins are becoming the hottest trend among crypto and tradfi companies. Companies like Ripple, Mastercard, Visa, Dutch Bank Ing and Stripe all end up stableCOin industry. Ripple even reportedly offered $ 4 billion or $ 5 billion to buy stableecoin Essuer Circle. Meanwhile, venture company Andreessen Horowitz (A16Z) said stableecoins are in a “WhatsApp moment” for money transfers, with the potential to disrupt the payment industry, as Instant Messaging did for cross-border telephone calls and texts.
In the midst of the intensification of competition, PayPal recently said it is set to start offering us users a benefit of 3.7% on the balance of its Pyusd to increase ante in StableCoin Wars. The payment giant’s stablecoin has a market capital of $ 887 million that puts it in sixth place among stableecoin issuers, according to CoinMarketcap data.
Read more: StableCOin market could grow to $ 2T at Slut-20128: Default Charter
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