The U.S. Securities and Exchange Commission (SEC) has officially concluded its investigation into PayPal's PYUSD stablecoin without any punitive action. This move not only helps PayPal remove significant legal barriers but also opens new opportunities for expanding this stablecoin in a crypto market dominated by "giants" like Tether and Circle.
✅ SEC withdraws: Positive signal for PayPal and the stablecoin sector
According to a filing submitted on April 29, #Paypal confirmed that the SEC has officially closed the investigation with the content of "no enforcement actions taken." This investigation began in November 2023 when the SEC issued a subpoena for documents related to the issuance of PYUSD – a dollar-pegged stablecoin that PayPal announced in August 2023.
The SEC's conclusion of the investigation without any penalties is a positive signal, especially in the context of this agency recently ramping up oversight of the crypto market. For PayPal, this helps further affirm the legality and reliability of PYUSD – a crucial part of its strategy to expand into the digital asset sector.
💵 PYUSD: Still small in the world of stablecoins but growing
Despite being backed by a "giant" in the payment industry, #PYUSD is still struggling to make its mark in a market already crowded with major competitors such as:
Tether's USDT: market cap ~148.5 billion USD
Circle's USDC: market cap ~32 billion USD
Meanwhile, PYUSD has only reached ~880 million USD, equivalent to less than 1% of USDT's scale.
However, 2025 has seen positive signals: the circulating supply of PYUSD has increased by 75% since the beginning of the year, indicating improving demand, although still down 14% from the peak of over 1 billion USD in August 2024.
💡 New impetus: 3.7% interest rate and partnership with Coinbase
PayPal is actively implementing strategies to promote PYUSD. Two recent announcements demonstrate the company's clear efforts:
Implementing a 3.7% annual profit accumulation program for users holding PYUSD on the platform in the US – an attractive move in the context where stablecoins often do not yield interest.
Collaboration with Coinbase to expand the reach of PYUSD. PayPal CEO – Alex Chriss – emphasized the goal to place PYUSD "at the center" of new crypto applications, clearly reflecting the ambition to increase presence in the Web3 ecosystem.
These two moves help PYUSD become a more competitive product, especially if it can be integrated into the DeFi ecosystem and e-commerce.
📈 Positive business results support market confidence
Not only in the stablecoin segment, PayPal is also demonstrating stable financial strength:
Q1 profit reached 1.33 USD/share, far exceeding expectations of 1.16 USD.
Revenue increased slightly by 1% to 7.8 billion USD.
The company has also completed large-scale share buyback programs, reflecting confidence in its financial situation and future growth.
Stability in core operations provides PayPal with more resources and confidence to continue expanding its crypto segment, with PYUSD playing a key role.
🔗 Impact on the crypto market and Binance users
For the crypto community, especially users on major platforms like Binance, the SEC's "overlook" of PYUSD could create a positive ripple effect:
Confidence in stablecoins issued by major financial institutions is increasing, thereby promoting wider application in payments and DeFi.
Users can expect exchanges like Binance to expand listings or integrate PYUSD, especially as the trading volume and presence of this stablecoin increases thanks to partners like Coinbase.
Incentive programs like a 3.7% interest rate may stimulate competition in the stablecoin market, forcing other issuers to enhance product attractiveness.
In the booming context of DeFi and real asset tokenization (RWA), a strongly backed stablecoin like PYUSD, if heading in the right direction, could become an important bridge between traditional finance and blockchain – a factor that investors on Binance should closely monitor.
⚠️ Risk warning
The cryptocurrency market always carries high risks and is not suitable for all investors. Stablecoins, even when backed by real assets, can face legal, technical, or liquidity risks. Users should carefully consider and only invest amounts that align with their risk tolerance.