Big win for PayPal! The U.S. Securities and Exchange Commission (SEC) has officially ended its investigation into PayPal’s stablecoin, PayPal USD (PYUSD) — with no enforcement action to follow.
In a regulatory filing dated April 29, PayPal revealed that the SEC has wrapped up its probe, originally initiated in November 2023 when a subpoena was issued. At the time, PayPal fully cooperated with the agency, supplying the requested documents.
But now, it's game on for PYUSD.
The company stated the SEC informed them in February that it would be closing the inquiry, giving PayPal’s digital dollar a clean slate to move forward.
PYUSD, fully backed by U.S. dollar reserves including short-term treasuries and cash equivalents, has struggled to gain massive traction in a market ruled by giants like Tether (USDT) and Circle (USDC). Currently, PYUSD holds a market cap of $880 million — a tiny fraction compared to Tether’s colossal $148.5 billion.
However, the tide may be turning.
Since the start of 2025, the supply of PYUSD has grown by 75%, showing promising momentum. Though it's still 14% below its August 2024 peak of $1 billion, new strategic moves could spark a surge.
PayPal recently announced a 3.7% annual reward for U.S. users who hold PYUSD through its platform — a compelling loyalty program aiming to attract long-term holders.
Adding to the excitement, PayPal has also teamed up with Coinbase to push the adoption of PYUSD through innovative stablecoin-based solutions. Alex Chriss, PayPal CEO, shared his vision:
> “We’re excited to drive new, exciting, and innovative use cases together with Coinbase and the entire cryptocurrency community, putting PYUSD at the center.”
All of this comes as PayPal continues to flex its financial muscle, posting stronger-than-expected Q1 earnings:
Earnings per share: $1.33 (vs. $1.16 expected)
Revenue: $7.8 billion, up 1% year-over-year
With the regulatory cloud now cleared and strategic partnerships on the rise, PayPal’s stablecoin journey might just be getting started.
