SEC Ends PayPal’s PYUSD Stablecoin Investigation Without Enforcement Action

The Securities and Exchange Commission quietly closed its probe into PayPal’s dollar-pegged stablecoin PYUSD—no fines, no charges, just another regulatory shrug in crypto’s wild west.

Market breathes sigh of relief as SEC passes on another chance to ’protect investors’ from the horrors of... a fully collateralized stablecoin. Meanwhile, TradFi still can’t decide whether to ban stablecoins or launch their own.

PayPal has confirmed that the U.S. Securities and Exchange Commission has ended its investigation into the company’s U.S. dollar-backed stablecoin, PYUSD, without taking any action. In a regulatory filing on April 29, PayPal said the SEC notified them that the case was closed. The investigation began after PayPal received a subpoena from the SEC’s Division of Enforcement in November 2023. The news marks a positive step for PayPal’s crypto ambitions, clearing a regulatory cloud over PYUSD.