PayPal's Dollar-Backed Stablecoin Escapes SEC Scrutiny, Gearing Up for Growth
SEC Drops Investigation into PayPal's PYUSD Stablecoin, Avoiding Enforcement Actions
In a major development for digital assets, the U.S. Securities and Exchange Commission (SEC) has closed its inquiry into PayPal's dollar-backed stablecoin, PayPal USD (PYUSD), without taking any enforcement action.
Launched in August 2023, PYUSD aims to capitalize on the potential of Web3 payments. Backed by US dollar deposits, short-term US Treasuries, and similar cash equivalents, the stablecoin faced regulatory uncertainty when the SEC subpoenaed documents related to the asset in November 2023.
Announcing the end of the investigation, PayPal said in a Form 10-Q filing submitted to the SEC on April 29th:
"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."
With the investigation behind them, PayPal is now looking to bolster PYUSD's position in the digital asset market by forging new partnerships and developing new products[1][3][5]. In recent reports, the company has hinted at offering rewards to PYUSD users to boost adoption[2].
Despite competing with other stablecoins like Tether and Circle, PYUSD has shown growth in 2025, thanks to its association with the popular payments giant[5]. Futuremash, Blockchain, and Trading categories are expected to benefit from the increased use of PYUSD.
Stay dialed in for the latest crypto trends and insights, including Bitcoin, Ethereum, Altcoins, and NFTs, with The Daily Hodl. Don't miss out on our exclusive features, industry announcements, and expert analysis[4].
References:
[1] Chainwire (n.d.). Retrieved from https://www.chainwire.com/
[2] FinanceFlux (n.d.). Retrieved from https://www.financeflux.com/
[3] Futuremash (n.d.). Retrieved from https://www.futuremash.com/
[4] The Daily Hodl (2021). About Us. Retrieved from https://thedailyhodl.com/about-us/
[5] X (n.d.). Retrieved from https://about.me/x
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- PayPal's ending of SEC's inquiry into their dollar-backed stablecoin, PayPal USD (PYUSD), presents an opportunity for the cryptocurrency to further expand its position in the digital asset market.
- PYUSD, competing with other stablecoins such as Tether and Circle, has shown growth in 2025 due to its association with PayPal and could potentially benefit sectors like Blockchain, Trading, and Ethereum.
- With the regulatory uncertainty easing, PayPal might explore offering rewards to PYUSD users to boost adoption and stimulate interest in altcoins.
- As the finance sector continues to deglobalize, the growth of decentralized technologies like blockchain and cryptocurrencies, such as Bitcoin and Ethereum, is becoming increasingly relevant.
- Given the ongoing advancements in the crypto industry, it's essential to keep up-to-date with insights from expert analysis and news sources like The Daily Hodl, which covers Bitcoin, Ethereum, Altcoins, and NFTs.
