US regulator ends investigation into PayPal stablecoin
Date: 2025-04-30 Author: Henry Casey Categories: BUSINESS
The regulator had requested documents related to this asset back in November 2023, but later notified the company that enforcement action would not be taken.
The PYUSD stablecoin was introduced in August 2023 in partnership with Paxos Trust Company. This cryptocurrency asset is pegged 1:1 to the US dollar and is available to users of the PayPal and Venmo platforms in the US. At one point, the market cap of PYUSD exceeded the $1 billion mark, but it currently stands at $879.8 million.
The conclusion of the SEC investigation may help increase confidence in PYUSD among large companies and retail users, especially in light of the ongoing discussions in the US Congress regarding the legal regulation of stablecoins. Despite this, PayPal is concerned about the uncertainty in the regulatory environment, which may lead to additional risks for issuers and their partners, as well as potential reputational damage. The possibility of PYUSD being used in illegal transactions also remains an urgent concern for the company.
This year, several major cryptocurrency platforms such as Kraken and Crypto.com have decided to restrict access to the PYUSD stablecoin for European users due to the requirements of the new EU legislation on cryptocurrencies (MiCA).
Thus, despite the completion of the investigation, the legal regulation of stablecoins remains a focus for both companies and regulators.
