The U.S. Securities and Exchange Commission (SEC) is closing its inquiry into the dollar-backed crypto asset issued by the payments giant PayPal.
In August 2023, PayPal introduced the PayPal USD (PYUSD) stablecoin to capitalize on the potential of Web3 payments.
The asset is backed by US dollar deposits, short-term US Treasuries and similar cash equivalents.
By November, PayPal issued a statement saying that the securities regulator was investigating PYUSD and had subpoenaed documents relating to the asset. The company also expressed concern over the regulatory uncertainty surrounding stablecoins.
Nearly two years after receiving the subpoena, PayPal says that the securities watchdog will no longer pursue the inquiry. In a Form 10-Q submitted to the SEC on April 29th, PayPal says the regulator is not taking legal action.
“In November 2023, we received a subpoena from the U.S. SEC Division of Enforcement relating to PayPal USD stablecoin. The subpoena requested the production of documents. In February 2025, the SEC communicated it was closing this inquiry without enforcement action.”
The development comes amid reports that PayPal is planning to offer rewards to PYUSD users to boost adoption of the stablecoin.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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The U.S. Securities and Exchange Commission (SEC) is closing its inquiry into the dollar-backed crypto asset issued by the payments giant PayPal.
In August 2023, PayPal introduced the PayPal USD (PYUSD) stablecoin to capitalize on the potential of Web3 payments.
The asset is backed by US dollar deposits, short-term US Treasuries and similar cash equivalents.
By November, PayPal issued a statement saying that the securities regulator was investigating PYUSD and had subpoenaed documents relating to the asset. The company also expressed concern over the regulatory uncertainty surrounding stablecoins.
Nearly two years after receiving the subpoena, PayPal says that the securities watchdog will no longer pursue the inquiry. In a Form 10-Q submitted to the SEC on April 29th, PayPal says the regulator is not taking legal action.
“In November 2023, we received a subpoena from the U.S. SEC Division of Enforcement relating to PayPal USD stablecoin. The subpoena requested the production of documents. In February 2025, the SEC communicated it was closing this inquiry without enforcement action.”
The development comes amid reports that PayPal is planning to offer rewards to PYUSD users to boost adoption of the stablecoin.
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Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
