SEC Investigates PayPal's Stablecoin
PayPal, the payment giant, has been served a subpoena by the United States Securities and Exchange Commission (SEC) in relation to its U.S. dollar-pegged stablecoin, PYUSD.
The SEC's Enforcement division issued the subpoena on November 1, requesting specific documents from PayPal. PayPal stated that they are cooperating with the SEC's request.
PayPal introduced its PYUSD stablecoin in early August, backed by U.S. dollar deposits and short-term Treasurys. It operates on the Ethereum blockchain, designed for digital payments and Web3 applications.
PYUSD has experienced significant success since its launch, reaching a market capitalization of $150 million within two months. At present, it boasts a market cap of approximately $159 million and a daily trading volume of nearly $2.7 million.
Expanding Crypto Services
PayPal has expanded its cryptocurrency services beyond the U.S. The company recently obtained a license from the United Kingdom Financial Conduct Authority to offer crypto services in the UK.
Regulatory Challenges in the U.S.
This SEC action against PayPal underscores the challenges faced by crypto companies in the U.S. The SEC has pursued legal actions against major crypto companies, including Coinbase and Ripple, in recent years.