SEC Ends Investigation into PayPal’s PYUSD Stablecoin
SEC ends investigation into PayPal’s PYUSD stablecoin, with no enforcement action planned. The probe, which began in November 2023, is now officially closed, according to a statement from PayPal.
No Action Recommended Against PayPal
PayPal reported that the SEC’s enforcement division confirmed it will not recommend any legal action against the company. PayPal reiterated that its stablecoin PYUSD is fully backed by U.S. dollar deposits, including short-term treasuries and cash equivalents.
PYUSD Circulation Grew 75% in 2025
Since the start of 2025, PYUSD’s circulating supply has increased by 75%, according to CoinGecko. Despite this growth, the asset still lags far behind industry leaders Tether (USDT) and USD Coin (USDC). PYUSD’s market cap is currently around $880 million — less than 1% of USDT’s $148.5 billion.
PayPal Partners with Coinbase to Expand PYUSD Use
On April 24, PayPal announced a strategic partnership with Coinbase to boost the adoption of PYUSD. CEO Alex Chriss described the collaboration as “innovative and exciting,” emphasizing the stablecoin’s role at the center of PayPal’s crypto strategy.
Regulatory Clarity Boosts Stablecoin Confidence
The conclusion of the investigation adds regulatory clarity to PYUSD’s position in the U.S. market. This may help strengthen PayPal’s ambitions in the digital asset space, especially as stablecoins attract increased attention from financial institutions.
