PayPal Announces SEC Ends Investigation Into Its Dollar-Pegged Stablecoin
The US Securities and Trading network Commission (SEC) has formally concluded its investigation into PayPal’s stablecoin pegged to the US dollar, PYUSD, without implementing any enforcement measures, as revealed by the payments firm in a regulatory filing dated April 29.
The probe, initiated in November 2023, was prompted by a subpoena from the SEC’s Division of Enforcement requesting information related to the stablecoin.
At that time, PayPal affirmed its willingness to cooperate with the regulatory body. In its most recent filing, the company disclosed that it was notified in February about the SEC’s decision to terminate the investigation.
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PayPal Introduces Stablecoin In 2023
Debuting in August 2023, PayPal’s stablecoin is promoted as entirely backed and redeemable for US dollars, underpinned by cash deposits and short-term treasury securities.
Despite its backing and PayPal’s significant role in digital payments, PYUSD has had difficulty standing out in a sector led by major players such as Tether and Circle.
Currently, with a trading market cap of around $880 million, PYUSD represents less than 1% compared to Tether’s substantial $148.5 billion supply.
Nonetheless, indications of regaining traction have emerged. Since the beginning of 2025, PYUSD’s supply has increased by 75%, as per CoinGecko data, although it remains 14% shy of its peak in August 2024.
This rise coincides with new efforts to enhance adoption, such as a loyalty incentive launched on April 23 that grants US users 3.7% annual rewards for holding PYUSD.
BREAKING:
SEC CONCLUDES INVESTIGATION INTO PAYPAL’S PYUSD STABLECOIN WITHOUT ENFORCEMENT pic.twitter.com/0feFJwnj5D
— Crypto Rover (@rovercrc) April 30, 2025
Additionally, PayPal announced a collaboration with Coinbase on April 24 aimed at promoting wider usage of the stablecoin.
This regulatory approval comes as PayPal achieves impressive Q1 results, surpassing Wall Street predictions with $1.33 per share and amassing $7.8 billion in revenue—an increase of 1% compared to the previous year—while also executing substantial share buybacks.
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Samourai Digital wallet Case Delayed
In another significant legal victory for the cryptocurrency sector, federal attorneys and the defense representatives for the co-founders of Samourai Crypto wallet have requested a postponement of court proceedings while both parties consider the potential dismissal of the case.
In a communication to US District Judge Richard Berman, the lawyers for Samourai Wallet’s CEO Keonne Rodriguez and CTO William Hill sought a 16-day extension for pretrial motion deadlines.
A coalition comprising 34 crypto companies and advocacy organizations is pushing Congress to counter what they deem an “unprecedented and excessively broad” legal interpretation employed by the US Department of Justice (DOJ) regarding its case against the developers of the crypto mixer Tornado Cash.
In a letter issued on 26 March 2025, the coalition—spearheaded by the Decentralized finance Education Fund and endorsed by significant industry players such as Coinbase and Kraken—alerted lawmakers that the DOJ’s current position could potentially criminalize nearly all distributed ledger software creators.
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Key Takeaways
- The SEC has officially concluded its investigation into PayPal’s PYUSD stablecoin without taking enforcement measures.
- PYUSD’s circulating supply has surged 75% in 2025, bolstered by fresh adoption efforts including a loyalty rewards program.
- PayPal’s strategic alliances and robust Q1 performance indicate a revival of interest in its stablecoin endeavors.
The post PayPal Announces SEC Ends Investigation Into Its Dollar-Pegged Stablecoin appeared first on 99Bitcoins.
