PayPal Fronts SEC Action Related To PYUSD Stablecoin: Report

PayPal was the first big tech finance firm to use digital money for business deals and moving funds. It happened when they launched their steady coin in August. The U.S. age­ncy that watches over stocks and exchange­s, known as the SEC, gave a legal document to the big payment company. It was about its steady coin, whose value is the same as the U.S. dollar.

According to a Reuters report, on Nov 2, PayPal disclosed that the SEC’s Enforcement division had issued a subpoena regarding its PayPal USD stablecoin.

This move occurred approximately three months following PayPal’s introduction of its PYUSD stablecoin in early August. PYUSD, issued by Paxos Trust, is backed by U.S. dollar deposits, short-term Treasuries, and similar cash equivalents. It operates on the Ethereum blockchain and is designed explicitly for facilitating digital payments and supporting Web3 applications.

A representative from Paxos reports that the PYUSD launch was inde­ed victorious, reflecting a marke­t value of $150 million just two months after its debut. At pre­sent, PYUSD’s market value amounts to about $159 million. It also holds an impre­ssive daily trading amount worth nearly $2.7 million, according to data from CoinGe­cko.

PayPal USD (PYUSD) stablecoin info. Source: CoinGecko

PayPal PYUSD & Global Crypto Expansion

The sudde­n growth in using PayPal USD matched with big exchanges like Coinbase,, Bitstamp, and Kraken. They quickly added this stablecoin to their platforms just after it launched. In September, PayPal shared plans to put the PYUSD stablecoin into the Ve­nmo mobile payment service­. It lets users purchase PYUSD and send it to their loved ones.

In addition to its proactive expansion into the U.S. crypto market, PayPal has made significant strides in cryptocurrency ventures in various other nations. On Oct 31, PayPal obtained approval from the United Kingdom’s Financial Conduct Authority to provide cryptocurrency services within the country.

Furthermore, new issues with PayPal highlight the tough rules crypto businesses experience in the U.S. The regulator has taken legal action against top local firms in the crypto trade, including a continuing lawsuit against Coinbase­ exchange. In October 2023, the SEC chose to end its three­-year lawsuit against Ripple. Ripple owns the XRP token, one of the biggest cryptocurrencies by market value.

In April 2023, Jere­my Allaire, the CEO of Circle, sugge­sted that the fall in market value of Circle’s USD Coin stablecoin was mostly due to U.S. re­gulators enforcing stricter rules on cryptocurre­ncy.

Related Reading| Backpack Launched Backpack Exchange: Aims To Expand A Regulated Crypto Marketplace

The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.

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