The US Securities and Exchange Commission (SEC) has officially wrapped up its investigation into PayPal’s US dollar-pegged stablecoin, PYUSD, without enforcing any actions against the company. This was disclosed by PayPal in a regulatory filing dated April 29.

The inquiry commenced in November 2023, triggered by a subpoena from the SEC’s Division of Enforcement, which sought documentation relating to the stablecoin.

At that time, PayPal confirmed its cooperation with regulators. In this latest filing, the company stated it was informed in February that the SEC had decided to close the case.

Key Highlights

• PayPal’s PYUSD stablecoin was launched in August 2023 and is fully backed and redeemable for US dollars, supported by cash deposits and short-term treasury securities.
• Despite its solid backing and PayPal’s strong position in digital payments, PYUSD has struggled to gain traction in a market largely dominated by competitors like Tether and Circle.
• PYUSD currently boasts a market capitalization of around $880 million, which is less than 1% of Tether’s $148.5 billion circulation.
• There are signs of improved momentum, with a 75% increase in circulating supply since the start of 2025, although it remains 14% lower than its August 2024 peak.
• PayPal has launched new initiatives to enhance adoption, including a loyalty program that promises US users 3.7% annual rewards for holding PYUSD.

BREAKING:
SEC ENDS INVESTIGATION INTO PAYPAL’S PYUSD STABLECOIN WITHOUT ENFORCEMENT
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Furthermore, on April 24, PayPal announced a strategic alliance with Coinbase aimed at fostering greater usage of the stablecoin. This regulatory clarity comes on the heels of a robust Q1 earnings report, which surpassed Wall Street’s predictions with a profit of $1.33 per share and $7.8 billion in revenue—a 1% increase from the prior year—while also completing significant stock buybacks.