Source: Cointelegraph
Original text: (The U.S. Securities and Exchange Commission (SEC) ends its investigation into PayPal's stablecoin)
PayPal stated that the SEC has terminated its investigation into the dollar stablecoin under this payment giant.
In its regulatory filing on April 29, PayPal stated that the SEC has concluded its investigation into PayPal USD (PYUSD) and will not take any action.
The company stated that it received a subpoena from the SEC's enforcement division regarding its stablecoin in November 2023. PayPal at that time declared: "The subpoena requires the provision of documents. We are cooperating with the SEC on this matter."
In the latest filing, PayPal stated that the SEC notified it in February that it would "end this investigation without taking any enforcement action."
PayPal claims its stablecoin is 100% redeemable for dollars and is "fully backed" by dollar deposits (including short-term government bonds and cash equivalents).
However, in a highly competitive market dominated by Tether and Circle, the development of this stablecoin has been slow. PYUSD currently has a market value of only $880 million, less than 1% of Tether's (USDT) market value of $148.5 billion.
According to CoinGecko data, PayPal's stablecoin has shown strong growth this year, with the circulation of PYUSD increasing by 75% since the beginning of 2025, but still 14% lower than the peak supply of over $1 billion in August 2024.
PYUSD yield program in partnership with Coinbase
The new loyalty program announced by the company on April 23 may further drive growth, allowing U.S. users to earn an annual yield of 3.7% by holding PYUSD.
On April 24, PayPal announced a partnership with Coinbase to enhance the adoption of PYUSD. PayPal President and CEO Alex Chriss stated: "We look forward to working with Coinbase and the entire cryptocurrency community to drive innovative use cases, making PYUSD central."
The payment giant also reported strong first-quarter earnings and the completion of significant share buybacks. The company reported earnings per share of $1.33, exceeding Wall Street's expectation of $1.16, with revenue growing 1% year-over-year to $7.8 billion.
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