SEC Closes Investigation into PayPal’s PYUSD Stablecoin Without Action
The U.S. Securities and Exchange Commission (SEC) has concluded its investigation into PayPal's dollar-backed stablecoin, PayPal USD (PYUSD), without any enforcement action. This inquiry began over a year ago after the SEC issued a subpoena in November 2023 for document production.
Key points include:
- The SEC informed PayPal in February 2025 that the investigation was closed.
- This development is part of a broader trend where the SEC has dropped investigations into multiple crypto firms.
- Stablecoins have become a central topic in regulatory discussions regarding their classification as securities or money market funds.
- PayPal launched PYUSD on Ethereum in August 2023, backed by U.S. Treasury bills and dollar deposits for peer-to-peer payments and decentralized applications.
- The stablecoin sector is gaining traction with traditional financial institutions entering the market.
- PayPal plans to offer a 3.7% yield on PYUSD balances to enhance its competitive position in the stablecoin market.
- PYUSD currently has a market cap of $887 million, ranking sixth among stablecoin issuers.