PayPal’s PYUSD Lands in SEC’s Crosshairs as Subpoena Emerges

SEC subpoenas PayPal for PYUSD stablecoin data amidst intensified crypto regulation efforts.

PYUSD coins coming out of a rainbow , a little dark monster is waiting at the end.
Created by Kornelija Poderskytė from DailyCoin
  • The United States Security and Exchange Commission has hit Paypal with a new subpoena.
  • The SEC is demanding data related to the company’s dollar-pegged native PYUSD stablecoin.
  • Paypal is also being probed by the Consumer Financial Protection Bureau.

The United States Security and Exchange Commission (SEC) has ramped up regulatory scrutiny throughout the year, with a string of investigations and legal actions against cryptocurrency projects and exchanges.

Having previously targeted industry giants like Binance, Coinbase, and Ripple, the financial watchdog has now fixated its gaze on a new target.

SEC Pounces On Paypal

On November 1st, digital payment pioneer Paypal received a subpoena from the SEC, requesting the provision of data related to its stablecoin.

In a quarterly report filed with the commission on November 2nd, PayPal wrote “We received a subpoena from the U.S. SEC Division of Enforcement relating to PayPal USD stablecoin, The subpoena requests the production of documents.”

PayPal PYUSD, launched in August, is a digital currency backed by the U.S. dollar that simplifies digital payments, accelerates value transfers, and facilitates international remittances. It is structured as an ERC-20 token on the Ethereum blockchain and ensures seamless integration with various developers, wallets, Web3 applications, and cryptocurrency exchanges.

The company added that it is “cooperating with the SEC in connection with this request”.

PayPal is also reportedly under investigation by the Consumer Financial Protection Bureau, after receiving a civil investigative demand from the agency in October.

To find out more about the features of Paypal stablecoin, read here: 

PYUSD: The Dangers of a Centralized Stablecoin  

Hong Kong reaffirms its commitment to the cryptocurrency industry during the Hong Kong Fintech Week 2023. Read more: 

Hong Kong Officials Allay JPEX Concerns, Chart Crypto Course 

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Grace Abidemi

Grace Abidemi, a cryptocurrency reporter at DailyCoin, covers industry developments and trends. She previously worked as a freelance writer. With a Bachelor's degree in German Language and certifications in marketing and storytelling, Grace creates engaging content. When not working, she's in Nigeria, mastering cooking and canvas painting, and enjoys learning about different cultures and languages.