According to a recent filing, PayPal declared that the Securities and Exchange Commission has officially stopped investigating PayPal’s stablecoin PYUSD. According to this decision, the SEC might be starting to go easy on a strict approach to crypto.
The SEC started investigating PayPal’s stablecoin in November 2023, and they finally concluded the case after 15 months. This remains a piece of good news for PayPal and the entire Cryptocurrency industry, which has faced a lot of pressure from regulators in recent years.
SEC Backs Off as PayPals Stablecoin Gains Momentum
A report was filed on April 29, in which PayPal shared that the SEC has officially ended their investigation into PayPal’s stablecoin USD (PYUSD), which is the company’s digital coin that is tied to the U.S. dollar.
The investigation was started in November 2023 when PayPal received a legal request asking for documents about the creation of PayPal’s stablecoin and its release. In the entire process, PayPal was working with the SEC.
The filing said that, in February 2025, PayPal was told that the investigation was over and there would be no action taken against them. These results suggest that the SEC is being lenient with strict crypto regulations, particularly under President Trump’s administration.
SEC Reduces Crypto Crackdowns Under Trump’s Leadership
The decision to end the investigation into PayPal’s stablecoin is part of a larger change at the SEC since January 2025. Several significant cases, including those against Coinbase, Ripple Labs, and Gemini, have been dropped or delayed. They have also stopped investigating people like Justin Sun and Richard Heart.
One of the Reddit users and Crypto supporters, u/DigitalRightsNow, had written on r/cryptocurrency saying that we might have finally started to see hope. Now, Stablecoins can be used more as the PYUSD investigation has ended.
PYUSD is Still an Underdog in a Crowded Market
PayPal’s stablecoin still faces tough competition. Since January, PYUSD’s market value has increased by 75% and has reached $880 million, but it is still much smaller if we compare it with big players like Tether’s USDT, which is valued at $148.5 billion.
Though it looks like things have started to pick up, last week, PayPal introduced a new loyalty program that offered an annual return of 3.7% for holding PYUSD. To encourage the real-world use of PayPal’s stablecoin, it made an announcement of a partnership with Coinbase.
PayPal’s CEO, Alex Chriss, said that we are excited to work with Coinbase to create new ways to use PYUSD and make it a key part of our digital finance plan.
Strong Earnings and New Partnerships Fuel Optimism
Along with the SEC decision, PayPal has also shared that they had strong earnings for their first quarter. The company has earned $1.33 per share and has made revenue of $7.8 billion.
The company has suggested that it will be focusing on Blockchain-based solutions. PYUSD is the starting point for new ideas for sending money between people and for business payments.
Conclusion
The SEC’s decision to end the investigation was a positive step, but there are still unclear rules around Stablecoins as Congress continues to debate new laws. However, for now, PayPal’s stablecoin has a break from the regulatory pressure and has given PayPal and other crypto firms a chance to move forward with more confidence.
FAQs
1. When did the US regulatory agency start investigating PayPal’s stablecoin?
Back in November 2023, the SEC investigated PayPal’s PYUSD.
2. When did PayPal receive the case conclusion from the SEC?
Paypal received formal notice that the SEC had closed its PYUSD investigation after 15 months in February 2025.
3. How has PYUSD, PayPal Stablecoin, performed in the market recently?
Since January, PYUSD’s market value has grown by 75%, reaching $880 million.
4. What did the SEC decide about PayPal’s PYUSD stablecoin?
The SEC has officially concluded its investigation into PayPal’s PYUSD stablecoin and will take no action.
5. What competitive strategies is PayPal using to promote PYUSD?
Paypal introduced a 3.7% APY loyalty program and united with Coinbase to push further adoption.
Glossary
PYUSD- A PayPal USD stablecoin
SEC- The United States government agency is held accountable for regulating the crypto industry
Loyalty Program- PayPal’s marketing strategy is prepared to encourage customers to use the product
APY- The rate of return on investment issued every year.
CBDC- A country’s fiat currency in digital form issued by the central bank.
Sources
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