Catenaa, Wednesday, April 30, 2025-The US Securities and Exchange Commission (SEC) has ended its investigation into PayPal’s US dollar-backed stablecoin, PYUSD, without taking enforcement action, the company disclosed Tuesday.
The inquiry stemmed from a 2023 subpoena related to the stablecoin’s issuance and operations.
The payment company revealed in a Form 10-Q filing that the SEC notified PayPal in February of its decision to close the case without penalties.
PayPal had originally received the subpoena in November 2023, requesting documents pertaining to PYUSD. Such subpoenas often precede enforcement proceedings, but do not necessarily indicate wrongdoing.
PYUSD, which launched in August 2023 through a third-party issuer, remains a relatively small player in the stablecoin market. As of Tuesday, it held a market capitalization of $879.9 million—dwarfed by competitors Tether (USDT) and Circle’s USD Coin (USDC), which have market caps of $148.4 billion and $62 billion, respectively.
PayPal has recently taken steps to boost the adoption of its digital currency. In May 2024, it expanded PYUSD to the Solana blockchain. The company has also announced a strategic partnership with Coinbase, allowing users to trade PYUSD without platform fees and redeem it 1:1 for US dollars. Additionally, PayPal has partnered with Anchorage Digital for a stablecoin reward initiative and with MoonPay to broaden payment options for PYUSD purchases.
Despite limited traction, the end of the SEC investigation removes a major regulatory overhang for the fintech giant as it seeks greater foothold in the crypto space.
