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The US SEC has ended another high-profile investigation into a crypto-related firm after dropping inquiries into PayPal’s PYUSD stablecoin.
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Financial technology titan PayPal confirmed this development in its Q1 financial report, released on Tuesday, April 29. It revealed that the US Securities and Exchange Commission has ended its probe into its stablecoin, PYUSD.
PayPal’s Stablecoin Business on the Loose
The Wall Street securities watchdog launched an investigation into PayPal’s PYUSD in November 2023, three months after its launch. The prominent payment firm disclosed that the US SEC served it with a subpoena, requesting documents related to the stablecoin.

However, its recent regulatory filing disclosed that the SEC confirmed in February that it was ending the over one-year investigation without any enforcement action. The recent development adds to the growing list of crypto-related firms the commission has let off since Donald Trump resumed office.
Recall that the US SEC has officially ended its litigation and investigation against Coinbase, Kraken, and Consensys, while Robinhood, Crypto.com, and Uniswap, among others, disclosed that the regulator has also agreed to drop charges against them.
Remarkably, the regulator noted in Coinbase’s case that the move marked its efforts to end regulation by enforcement and, through the newly formed Crypto Task Force, reform its regulatory approach towards the sector.
Meanwhile, the disclosure comes on the heels of a better-than-expected financial report from PayPal. For context, it beats Wall Street’s expectation of $1.16 per share to record impressive earnings of $1.33 per share for the first quarter of the year. The firm’s revenue also grew 1% year-over-year to $7.8 billion.
PayPal Introduces Strategies to Boost PYUSD
The fintech’s PYUSD token has failed to gain traction in the stablecoin sector amid continued dominance from Tether’s USDT and Circle’s USDC. The duo controls 62% and 26% of the fiat-pegged industry’s market cap, respectively, and almost 90% combined.

Meanwhile, PYUSD ranks sixth in the sector, with a valuation of only $880 million, less than 1% of USDT’s $148 billion and 14% of USDC’s $62 billion. Nonetheless, PYUSD has grown 76.7% from $498 million at the start of the year to its current valuation, signifying increasing traction.
Moreover, PayPal has introduced new strategies to enhance the stablecoin’s utility. On April 23, it announced a new scheme that offers US users a 3.7% annualized yield for holding the PYUSD stablecoin on PayPal and Venmo. This latest loyalty offering will resume in the summer of 2025.
A day after the announcement, PayPal also unveiled a partnership with the leading US-based cryptocurrency exchange, Coinbase. The fintech firm disclosed that the extended collaboration aims to drive innovation in stablecoin-based solutions, starting with a fee-free and 1:1 redemption of PYUSD on the Coinbase trading platform.
DisClamier:
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BOMB NEWS! 💥 The stablecoin of
,
💰, has been CLEARED of the SEC INVESTIGATION! 🥳 The company breathes EASILY and is ready to MOVE FORWARD! 🚀
This SEC CLOSURE comes amid REGULATORY CHANGES 🔄 and NEW STRATEGIC ALLIANCES 🤝 that seek to CONSOLIDATE PYUSD in the GLOBAL FINANCIAL ECOSYSTEM 🌐.
PayPal REPORTED in its Form 10-Q 📄: the SEC CLOSED the 2023 investigation into PYUSD WITHOUT IMPOSING ANY MEASURES! 🙌 It started last NOVEMBER 🗓️ with a SUBPOENA 📜, but IT DIDN'T GO FURTHER! 😉

The competition in the stablecoin market has become more intense than ever as PayPal announced plans to offer a 3.7% annual interest rate to users holding PYUSD, a bold move aimed at attracting users and asserting its position among giants like USDT and USDC.

🔹 Attractive interest rate – Big ambitions

According to the plan, users in the US holding #PYUSD in their PayPal or Venmo wallets will receive daily interest and monthly rewards in the PYUSD coin itself. This annual interest rate of 3.7% (APY) is not only high compared to traditional savings rates but also a clear statement that PayPal is willing to invest long-term to develop its own stablecoin.

Paypal is launching a new rewards program for its stablecoin PYUSD, offering U.S. users a 3.7% annual return to boost adoption in the competitive stablecoin market.

Incentivizing Use of PYUSD
Paypal Holdings is launching a new rewards program for its stablecoin PYUSD to boost adoption of the digital token within a fiercely competitive market. The initiative, announced on April 23 and slated to roll out this summer, will allow Paypal and Venmo users in the United States to earn a 3.7% annual reward on their PYUSD holdings.
According to a Bloomberg report, the rewards, which are paid monthly in PYUSD, can be exchanged for traditional fiat currency, sent to other users, or utilized for international transfers.
Jose Fernandez da Ponte, Paypal’s senior vice president and general manager of blockchain, crypto and digital currencies, said the goal is to incentivize the use of PYUSD as a payment method across PayPal’s network. The move to reward PYUSD holders is the fintech giant’s attempt to grow its footprint in the approximately $240 billion stablecoin market.
With a total market value of approximately $873 million, PYUSD remains a distant player compared with industry giants like Tether’s USDT, which boasts a market capitalization of around $145 billion. The next-ranked stablecoin, USDC, commands a market capitalization of just over $61 billion. As shown by Coingecko data, out of the 296 stablecoins tracked, only six currently hold a market value exceeding $1 billion.
Meanwhile, Da Ponte acknowledged that, similar to its competitors, PYUSD’s primary use has been within cryptocurrency-related transactions.
“We see stablecoins as building the next generation of payment rails, but we are aware that is something that takes time. We are halfway in a 10-year journey,” Da Ponte stated.
Paypal has outlined ambitions to further integrate PYUSD into its diverse product offerings throughout the year, with the goal of reducing payment costs and accelerating transaction speeds for its vast network of merchants and consumers.
“We are thinking a lot about how we can change the expense profile of the payments landscape by using stablecoins,” commented Paypal Chief Executive Officer Alex Chriss.
Since PYUSD’s introduction, the stablecoin landscape has become increasingly crowded. Several other major financial players have made moves into the sector, intensifying competition for Paypal. Fintech heavyweights Robinhood Markets Inc. and Revolut Ltd. are reportedly considering launching their own stablecoins. In addition, some U.S. banks and one are contemplating issuing their own stablecoins.
Paypal’s move to offer rewards mirrors strategies employed by other players in the stablecoin ecosystem. Cryptocurrency exchange Coinbase, for instance, already allows users to earn rewards on their holdings of Circle’s USDC.

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✅ PayPal will offer annual rewards of 3.7% on $PYUSD stablecoin balances to boost adoption, intensifying competition in the stablecoin market.

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