U.S. Concluded Its Investigation into PayPal’s PYUSD Stablecoin Without Taking Enforcement Action
US Securities and Exchange Commission (SEC) ended its investigation Paypal's PIUSD Stablecoin without taking implementation action, as revealed in Form 10-Q's Form File on PayPal on April 29, 2025. The investigation, which began in November 2023 with a subpoena requesting documents related to the launch and operation of the PUSD, which ended in February 2025.
Paypal has cooperated in full, and the SEC decision is aligned with a wider regulation shift, including softened positions under the new leadership and promotion of Stablecoin law such as Steady and genius. The PUSD, launched in August 2023, is supported by US dollar deposits, short-term resources, and cash equivalent, with a market cap of approximately $ 880 million to April 2025.
Paypal boosts adoption through initiatives such as a 3.7% annual yield program for US users and a coinbase cooperation to renounce PIUSD trading fees. The SEC has terminated its investigation into PayPal's pyusd stablecoin without implementation, as mentioned on April 29, 2025, form 10-Q, likely due to a combination of factors. Paypal's entire cooperation, which provides requested documents following November 2023 subpoena, may have shown compliance with regulatory standards.
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The structure of PASD-which is fully backed by US dollar deposits, short-term resources, and cash equivalent-is probably aligned with expectations for transparency and stability. In addition, a transfer of regulatory regulations, including the new SEC leadership assigned in February 2025 and the promotion of Stablecoin law such as stable and geniuses acts, may soften the agency's stance. The SEC's decision reflects a broader trend of regulatory clarity for stablecoins, especially as market leaders such as Tether and circle face of similar investigation.
The SEC's decision to terminate its investigation into PayPal's pyusd stablecoin without the action of implementation has many implications. The closure indicates that the structure and operation of the pyusd meets the current regulatory expectations, which strengthens its confidence in compliance and stability. It can set a precedent for other stablecoin issues that have navigted the SEC investigation.
By lifting uncertainty, Paypal can accelerate the adoption of the pyusd. Initiatives such as Coinbase's 3.7% yield program and cooperation can get traction, which potentially increases the $ 880 million market cap of pyusd and challenging competitors such as the USDT and USDC. The outcome may encourage other companies to launch or expand stablecoin offerings, especially as US Stablecoin (eg, stable and genius acts) are emerging, promoting a clearer frame of regulation.
The SEC decision improves the credibility of the pyusd, likely attracting institutions and retail users seeking regulated digital assets amid the growing Stablecoin demand (Global Market Cap ~ $ 150 billion in 2025). The resolution aligns with a softened SEC bearing under new leadership and reflects the broader regulation transfers, which potentially reduce the administration of the opponent and establish a change in the stablecoin sector.
Coinbase Added support for Paypal's PiUSD Stablecoin, with trade starting August 31, 2023, on the Ethereum network as an ERC-20 token, provided with liquidity conditions. It was initially listed in a “experiment” label due to freshness and low trading volume, since Coinbase expanded its cooperation with Paypal, which was announced on April 24, 2025, to boost the adoption of the pyusd.
This includes offering fee 1: 1 PIUSD-USD conversions for retail and institutional users and enabling direct redemption for USD on Coinbase platforms. Partnership also aims to explore new cases of on-chain use, such as payments and defi applications, and expand the support of pyusd on the PayPal business network to enhance Stablecoin's utility in commerce. It strengthens PayPal's position in the digital asset market and supports greater growth of the Stablecoin ecosystem under the emerging US regulations.
