Daniel Walker
PayPal has confirmed that the US Securities and Exchange Commission (SEC) has officially ended its investigation into its stablecoin, PYUSD, without taking any enforcement action. The announcement was made in the company’s most recent Form 10-Q filing.
The SEC notified PayPal in February that it had closed the inquiry linked to a 2023 subpoena that sought details regarding the launch and structure of PYUSD. The filing emphasized that the inquiry was dropped “without enforcement action,” marking a clear signal of regulatory relief.
Subpoena Was for Information Gathering Only
The original subpoena, issued in November 2023, requested documentation surrounding PYUSD’s development and use. While such subpoenas often raise regulatory concerns, they are typically used to collect background information, and do not always lead to penalties or legal action.
The news comes shortly after PayPal and Coinbase announced a strategic collaboration aimed at encouraging PYUSD usage. As part of the deal, Coinbase users can now buy, sell, and trade PYUSD with zero platform fees, and redeem the token at a 1:1 rate for U.S. dollars directly on the exchange. This could mark a significant step in enhancing the stablecoin’s visibility in the retail and institutional crypto space.
Still a Small Player in a Competitive Market
Despite increased efforts to grow its ecosystem, PYUSD remains a relatively small contender compared to stablecoin giants Tether (USDT) and Circle’s USD Coin (USDC). As of now, PYUSD holds a market cap of approximately $879.9 million, far behind USDT’s $148.4 billion and USDC’s $62 billion, according to data from PRIME.
PayPal’s Push for Adoption Continues
To expand its stablecoin footprint, PayPal introduced PYUSD on the Solana blockchain in May 2024, providing users with lower transaction fees and faster settlement speeds. The company also joined forces with Anchorage Digital to explore a stablecoin rewards program, and partnered with MoonPay to diversify PYUSD payment options.
