{"id":11600,"date":"2025-04-30T12:37:25","date_gmt":"2025-04-30T10:37:25","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=11600"},"modified":"2025-04-30T12:37:25","modified_gmt":"2025-04-30T10:37:25","slug":"sec-ends-inquiry-into-paypals-stablecoin-project","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/04\/30\/sec-ends-inquiry-into-paypals-stablecoin-project\/","title":{"rendered":"SEC Ends Inquiry into PayPal’s Stablecoin Project"},"content":{"rendered":"

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PayPal indicates that the US Securities and Exchange Commission has discontinued its inquiry into the payment behemoth\u2019s US-dollar stablecoin.<\/p>\n

In a regulatory filing<\/a> dated April 29, PayPal confirmed that the SEC had wrapped up its investigation into PayPal USD (PYUSD<\/a>) and would not pursue any action.<\/p>\n

The organization reported receiving a subpoena from the SEC\u2019s Division of Enforcement regarding its stablecoin back in November 2023.<\/p>\n

\u201cThe subpoena demands the provision of documents. We are fully cooperating with the SEC in relation to this request,\u201d PayPal<\/a> remarked at that time.<\/p>\n

In its most recent filing, the company stated that the SEC informed it in February that the agency \u201cwas concluding this inquiry without enforcement measures.\u201d<\/p>\n

PayPal maintains that its stablecoin is entirely redeemable for US dollars and \u201ccompletely supported\u201d by dollar deposits, which include short-term treasury instruments and cash equivalents.<\/p>\n

Nonetheless, the stablecoin has faced challenges in gaining traction within a saturated market led by competitors Tether and Circle. PYUSD\u2019s market capitalization stands at a mere $880 million, which is less than 1% of Tether\u2019s (USDT<\/a>) $148.5 billion.<\/p>\n

This year, however, PayPal\u2019s stablecoin has experienced improved growth, showing a 75% rise in PYUSD circulating supply since the start of 2025, according<\/a> to CoinGecko. It is still down 14% from its peak supply of just above $1 billion in August 2024.<\/p>\n

PayPal USD market capitalization. Source: <\/em>CoinGecko<\/em><\/a><\/figcaption><\/figure>\n

Earnings on PYUSD, Coinbase collaboration<\/h2>\n

This growth may be further enhanced by a company announcement<\/a> made on April 23 introducing rewards for PYUSD within a new loyalty program, allowing US users to earn 3.7% annually for holding the asset on the platform.<\/p>\n

Additionally, on April 24, PayPal declared<\/a> a partnership with Coinbase aimed at expanding the penetration of PYUSD.<\/p>\n

\u201cWe are eager to foster innovative and stimulating use cases together with Coinbase and the broader cryptocurrency community, positioning PYUSD at the forefront,\u201d stated Alex Chriss, PayPal President and CEO.<\/p>\n

Related: <\/strong><\/em>PayPal to provide 3.7% yield on stablecoin holdings: Report<\/strong><\/em><\/a><\/p>\n

The payments giant also announced strong earnings for the first quarter along with the completion of significant stock repurchase initiatives.<\/p>\n

The firm surpassed Wall Street projections, reporting earnings of $1.33 per share for the first quarter, exceeding analyst expectations of $1.16. Revenue increased by 1% compared to the previous year, totaling $7.8 billion.<\/p>\n

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