Global payments firm PayPal announced this week that it has received a subpoena from the U.S. SEC related to its recently launched stablecoin, PayPal USD (PYUSD).
According to PayPal’s latest quarterly earnings report, the subpoena asks the company to provide documents concerning its new dollar-backed cryptocurrency, PYUSD. PayPal claims it is cooperating fully with the SEC on this matter.
Launched in August 2022, PYUSD is a stablecoin designed to maintain a 1:1 peg to the U.S. dollar. It is backed by dollar deposits, short-term U.S. Treasuries, and cash equivalents held by PayPal.
Industry experts suspect the SEC is increasing oversight of stablecoins in the aftermath of major collapses like TerraUSD. Stablecoins may fall under existing securities regulations according to previous SEC guidance.
Separately, PayPal was recently approved as a cryptocurrency services provider in the UK by the Financial Conduct Authority, as it looks to expand its crypto offerings internationally.
The implications of the SEC’s subpoena will likely depend on what information regulators are seeking about PYUSD. However, it signals stablecoins like PayPal’s remain under regulatory scrutiny as adoption increases.
As crypto firms like PayPal work to gain regulatory compliance, the SEC subpoena demonstrates stablecoins face ongoing questions about their status under securities
#Paypal #SEC #Stablecoin #PYUSD
