$SOL The SEC abandons the investigation into PayPal's stablecoin

PayPal, the payment giant, has stated in a regulatory filing that its stablecoin PayPal USD is no longer under the SEC's scrutiny.

PayPal claims that the U.S. Securities and Exchange Commission (SEC) has dropped its investigation into the payment giant's U.S. dollar stablecoin.

PayPal said in a regulatory filing on April 29 that the SEC concluded its investigation into PayPal USD (PYUSD) and would take no action.

The company stated that it received a subpoena from the SEC's Division of Enforcement regarding its stablecoin in November 2023.

"The subpoena requests the production of documents. We are cooperating with the SEC in relation to this request," PayPal stated at that time.

In its latest filing, the firm said that the SEC notified it in February that the agency "was closing this investigation without enforcement action."

PayPal has asserted that its stablecoin is 100% redeemable for U.S. dollars and is "fully backed" by dollar deposits, including short-term treasuries and cash equivalents.

However, the stablecoin has struggled to gain traction in a crowded market dominated by rivals Tether and Circle. PYUSD has a market capitalization of only $880 million, less than 1% of Tether's $148.5 billion.

PayPal's stablecoin has experienced better growth this year, with a 75% increase in the circulating supply of PYUSD since early 2025, according to CoinGecko. It remains 14% below its peak supply of just over one billion dollars in August 2024.