SEC Drops Probe into PayPal’s Stablecoin as PYUSD Gathers Momentum

PayPal has officially cleared a major regulatory hurdle after the U.S. Securities and Exchange Commission (SEC) ended its investigation into the firm’s U.S. dollar-pegged stablecoin, PYUSD . In a regulatory filing dated April 29, the payments giant confirmed that the SEC had closed the case without recommending any enforcement action—a decision that marks a turning point for PayPal’s foray into digital assets. The investigation, which began with a subpoena from the SEC’s Division of Enforcement in November 2023, requested internal documents regarding PYUSD. While PayPal cooperated fully, it remained tight-lipped throughout the process. Now, with the agency officially dropping the inquiry as of February, the cloud of regulatory ambiguity surrounding its stablecoin has finally lifted. “We are pleased to have this matter resolved,” PayPal said in a brief statement. Though the company had always maintained that PYUSD was fully backed by dollar reserves, the SEC’s silence over months left investors wary. PYUSD Slowly Gains Ground Despite the green light, PayPal’s stablecoin still faces stiff competition from well-entrenched players like Tether and Circle. PYUSD’s current market capitalization sits at approximately $880 million—dwarfed by Tether’s $148.5 billion. Yet, signs of growth are emerging. According to CoinGecko data, PYUSD has grown its circulating supply by 75% since the beginning of 2025, though it still trails its August 2024 peak of just over $1 billion. That resurgence appears to be driven, in part, by new incentives PayPal rolled out last week. On April 23, the company announced a 3.7% annual yield for users who hold PYUSD through its loyalty rewards program, a move aimed at encouraging wider adoption. Strong Earnings Boost PayPal’s Crypto Ambitions Additionally, PayPal revealed a new partnership with Coinbase on April 24, aimed at broadening the utility and exposure of PYUSD within the crypto ecosystem . “We’re excited to accelerate adoption by building fresh use cases with Coinbase and the broader crypto community,” said Alex Chriss, PayPal CEO. The resolution of the SEC probe coincides with strong financial performance for PayPal. In Q1, the company reported earnings of $1.33 per share—well above analyst expectations of $1.16—on revenue of $7.8 billion. The post SEC Drops Probe into PayPal’s Stablecoin as PYUSD Gathers Momentum appeared first on TheCoinrise.com .

Source: The Coin Rise