The American regulator has ceased the investigation into PayPal's stablecoin

PayPal's management (NASDAQ:PYPL) reminded that in November 2023, the company received a subpoena from the SEC's enforcement division. The regulator demanded that the company provide documents related to the PYUSD stablecoin. However, in February 2025, the SEC notified the payment company of the conclusion of the investigation without further enforcement actions, which PayPal only recently disclosed.

PayPal launched PYUSD in August 2023 in partnership with Paxos Trust Company. The stablecoin, backed by the US dollar at a 1:1 ratio, is available to American users on PayPal and Venmo. Previously, the market capitalization of PYUSD exceeded $1 billion due to the growing popularity of the stablecoin, but this figure is now $879.8 million.

The closure of the investigation may increase the confidence of large corporate entities and retail users in PYUSD, especially considering that the US Congress continues to discuss the legal framework for the issuance and use of.