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SEC Issues Subpoena to PayPal Over PYUSD Stablecoin

1 min
Updated by Geraint Price
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In Brief

  • The SEC has issued a subpoena to PayPal concerning its stablecoin, PYUSD, as part of a crackdown on crypto.
  • PayPal has pledged to cooperate with the SEC's request for documentation related to the USD-tied stablecoin.
  • PYUSD, launched in partnership with Paxos, is backed by total assets that meet or exceed the token balance.
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Payment giant PayPal’s stablecoin, PYUSD, has fallen under the scrutiny of the US Securities and Exchange Commission (SEC)

This year, the SEC has been in a full-fledged crackdown mode, targeting the crypto ecosystem. It is fighting lawsuits against various firms, while some crypto businesses had to withdraw their business from the United States.

PayPal Says it Will Cooperate With SEC

According to PayPal’s quarterly report, it has received a subpoena from the SEC regarding its stablecoin tied to US dollars. To clarify, a subpoena is a legal order, that requires a person or an entity to appear in the court, testify, or submit certain documentation needed for proceedings. 

Read more: What Does It Mean To Receive a Wells Notice From the SEC?

PayPal wrote:

“On Nov. 1, 2023, we received a subpoena from the US SEC Division of Enforcement relating to PayPal USD stablecoin. The subpoena requests the production of documents. We are cooperating with the SEC in connection with this request.”

PayPal launched its stablecoin, PYUSD, in August by partnering with Paxos, the firm that was the issuer of Binance’s stablecoin BUSD.

Then, in September, it released a transparency report showing that the total assets held in custody meet or exceed the token balance. To boost adoption, it partnered with the crypto exchange Crypto.com, making it the preferred exchange for PYUSD.

Read more: What Is a Stablecoin? A Beginner’s Guide

Do you have anything to say about the PayPal SEC subpoena or anything else? Write to us or join the discussion on our Telegram channel. You can also catch us on TikTok, Facebook, or X (Twitter).


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Harsh Notariya
Harsh Notariya is a journalist at BeInCrypto, who writes about various topics, including decentralized physical infrastructure networks (DePIN), tokenization, crypto airdrops, decentralized finance (DeFi), meme coins, and altcoins. Before joining BeInCrypto, he was a community consultant at Totality Corp, specializing in the metaverse and non-fungible tokens (NFTs). Additionally, Harsh was a blockchain content writer and researcher at Financial Funda, where he created educational reports on...
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