The SEC has closed its investigation into PayPal’s stablecoin PYUSD, following similar recent decisions to end probes into crypto companies.
In the meantime, PayPal reports strong earnings and launches new crypto initiatives.
PayPal (NASDAQ:
PYPL) announced that
the U.S. Securities and Exchange Commission (SEC) has closed its investigation
into the company’s USD-backed stablecoin, PayPal USD (PYUSD), with no
enforcement action taken.
SEC Ends PayPal Stablecoin
Probe, No Enforcement Action
The
payments provider disclosed in the Q1 2025 earnings report that the SEC’s
Division of Enforcement notified the company in February that it had concluded
its inquiry into PYUSD. The investigation began in November 2023, when the SEC
issued a subpoena requesting documents related to the stablecoin. PayPal said
it fully cooperated with the regulator’s request.
“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 company commented in the statement.
The news of
the SEC’s decision comes as PayPal reported stronger-than-expected
first-quarter financial. The company posted earnings of $1.33 per share,
surpassing Wall Street forecasts, with revenue rising 1% year-over-year to $7.8
billion. PayPal also highlighted the completion of significant share repurchase
activities during the quarter.
PYUSD,
launched in August 2023, is marketed as being fully backed by U.S. dollar
deposits, short-term Treasuries, and cash equivalents. The stablecoin is
designed to be redeemable 1:1 for U.S. dollars.
Despite
these assurances, PYUSD
has so far captured only a small share of the stablecoin market, which is
dominated by larger players such as Tether and Circle. As of late April,
PYUSD’s market capitalization stood at approximately $880 million, less than 1%
of Tether’s $148.5 billion.
PYUSD is currently only the sixth biggest stablecoin in the ecosystem. Source: CoinMarketCap
Recent
months, however, have seen a pickup in PYUSD’s growth, with circulating supply
rising 75% since the start of 2025, according to data from CoinGecko. However,
the stablecoin’s supply remains below its August 2024 peak.
“We are
excited to drive new, exciting, and innovative use cases together with Coinbase
and the entire cryptocurrency community, putting PYUSD at the center,” said
Alex Chriss, PayPal President and CEO.
With the
SEC inquiry now closed, PayPal is looking to expand PYUSD’s presence in the
digital asset market, leveraging new partnerships and product offerings to
compete in a crowded stablecoin sector.
PayPal (NASDAQ:
PYPL) announced that
the U.S. Securities and Exchange Commission (SEC) has closed its investigation
into the company’s USD-backed stablecoin, PayPal USD (PYUSD), with no
enforcement action taken.
SEC Ends PayPal Stablecoin
Probe, No Enforcement Action
The
payments provider disclosed in the Q1 2025 earnings report that the SEC’s
Division of Enforcement notified the company in February that it had concluded
its inquiry into PYUSD. The investigation began in November 2023, when the SEC
issued a subpoena requesting documents related to the stablecoin. PayPal said
it fully cooperated with the regulator’s request.
“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 company commented in the statement.
The news of
the SEC’s decision comes as PayPal reported stronger-than-expected
first-quarter financial. The company posted earnings of $1.33 per share,
surpassing Wall Street forecasts, with revenue rising 1% year-over-year to $7.8
billion. PayPal also highlighted the completion of significant share repurchase
activities during the quarter.
PYUSD,
launched in August 2023, is marketed as being fully backed by U.S. dollar
deposits, short-term Treasuries, and cash equivalents. The stablecoin is
designed to be redeemable 1:1 for U.S. dollars.
Despite
these assurances, PYUSD
has so far captured only a small share of the stablecoin market, which is
dominated by larger players such as Tether and Circle. As of late April,
PYUSD’s market capitalization stood at approximately $880 million, less than 1%
of Tether’s $148.5 billion.
PYUSD is currently only the sixth biggest stablecoin in the ecosystem. Source: CoinMarketCap
Recent
months, however, have seen a pickup in PYUSD’s growth, with circulating supply
rising 75% since the start of 2025, according to data from CoinGecko. However,
the stablecoin’s supply remains below its August 2024 peak.
“We are
excited to drive new, exciting, and innovative use cases together with Coinbase
and the entire cryptocurrency community, putting PYUSD at the center,” said
Alex Chriss, PayPal President and CEO.
With the
SEC inquiry now closed, PayPal is looking to expand PYUSD’s presence in the
digital asset market, leveraging new partnerships and product offerings to
compete in a crowded stablecoin sector.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
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