The U.S. Securities and Alternate Fee (SEC) is closing its inquiry into the dollar-backed crypto asset issued by the funds large PayPal.
In August 2023, PayPal launched the PayPal USD (PYUSD) stablecoin to capitalize on the potential of Web3 funds.
The asset is backed by US greenback deposits, short-term US Treasuries and related money equivalents.
By November, PayPal issued a press release saying that the securities regulator was investigating PYUSD and had subpoenaed paperwork referring to the asset. The corporate additionally expressed concern over the regulatory uncertainty surrounding stablecoins.
Almost two years after receiving the subpoena, PayPal says that the securities watchdog will now not pursue the inquiry. In a Kind 10-Q submitted to the SEC on April twenty ninth, PayPal says the regulator shouldn’t be taking authorized motion.
“In November 2023, we obtained a subpoena from the U.S. SEC Division of Enforcement referring to PayPal USD stablecoin. The subpoena requested the manufacturing of paperwork. In February 2025, the SEC communicated it was closing this inquiry with out enforcement motion.”
The event comes amid experiences that PayPal is planning to supply rewards to PYUSD customers to spice up adoption of the stablecoin.
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