The PayPal management recalled that in November 2023 the company received the SEC department to comply with legal norms for the agenda. The regulator demanded that the company provide documents related to PyUSD stablecoin. However, in February 2025, the SEC notified the payment company about the completion of the investigation without further forced actions, which PayPal reported only recently.
PayPal launched Pyusd in August 2023 in partnership with Paxos Trust Company. Stebblecoin, provided by the US dollar in a ratio of 1: 1, is available for American users on PayPal and Venmo. Earlier, the PyUSD market capitalization exceeded $ 1 billion due to the growing popularity of Stablecoin, but now this figure is $ 879.8 million.
The closure of the investigation can increase the trust of large lawyer companies and retail users to PyUSD, especially taking into account the fact that the US Congress continues to discuss the legal framework for the release and use of stablecoins.
However, the PayPal management is afraid that the regulatory environment for stablecoins is still unstable, and the future legislation can imply new costs and risks for issuers of stabelcoins, as well as their partners. There is a possibility of reputation damage if the issuer partner encounters legal difficulties, or if PyUSD is used in illegal transactions.
This year, the Kraken and Crypto.com cryptocurrency exchanges closed access to the PyUSD stabelcoin for European traders to comply with the Law on the regulation of cryptocurrencies in the European Union (Mica).
Source: Bits

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