Key Takeaways
- The probe started in November 2023 when the SEC’s Division of Enforcement issued a subpoena requesting documents related to the launch and structure of PYUSD.
- The company was informed in February 2025 that the SEC had concluded its inquiry
The U.S. Securities and Exchange Commission (SEC) has ended its investigation into PayPal’s U.S. dollar-pegged stablecoin, PayPal USD (PYUSD), without taking enforcement action.
According to a regulatory filing submitted by PayPal on April 29, the company was informed in February 2025 that the SEC had concluded its inquiry and would not be pursuing any further action. The probe started in November 2023 when the SEC’s Division of Enforcement issued a subpoena requesting documents related to the launch and structure of PYUSD.
PYUSD was introduced in August 2023 and is issued by Paxos Trust Company, a regulated financial institution based in New York. PayPal has described the token as being fully backed by U.S. dollar deposits, U.S. Treasuries, and similar cash equivalents. It is also designed to be 100% redeemable for U.S. dollars.
As of April 2025, PYUSD has a circulating supply of approximately $880 million, according to market data. In comparison, Tether’s USDT and Circle’s USDC—two of the largest stablecoins—have significantly higher market capitalizations, exceeding $100 billion and $32 billion respectively.
PayPal continues to work on expanding the use of its stablecoin. On April 24, 2025, the company announced a partnership with Coinbase, aimed at integrating PYUSD into Coinbase’s platform.
Last year, the SEC stopped its probe into Paxos, a New York-based issuer of stablecoins, suggesting that stablecoins may not be treated as securities in most cases. Earlier in April, the SEC Division of Corporation Finance concluded that it does not deem certain stablecoins to be securities.
