The United States Securities and Exchange Commission (SEC) has officially closed the investigation into the PayPal USD (PYUSD) stablecoin without taking any enforcement actions - according to the latest disclosure from PayPal in its recent financial report.
Specifically, in the 10-Q form filed on 29/4/2025, PayPal stated that the SEC notified in February that the agency would end the investigation related to the document subpoena issued in 2023 for PYUSD. This subpoena was sent by the SEC in November 2023, requesting PayPal to provide documents related to the issuance of the PYUSD stablecoin. Typically, the SEC sending a subpoena does not equate to legal action but is usually aimed at collecting information for initial assessment.
The information about the investigation's closure was announced right after PayPal and cryptocurrency exchange Coinbase declared a strategic partnership. Accordingly, Coinbase users can now trade PYUSD completely free of platform fees and can convert PYUSD to USD at a 1:1 ratio directly on the exchange. This move is expected to significantly boost the liquidation and usage of PYUSD in the market.
PYUSD was introduced by PayPal in August 2023 through a third-party issuer. However, this stablecoin has not yet achieved a significant market share when compared to its two major competitors, Tether's USDT and Circle's USDC. According to data from The Block, the market capital of PYUSD currently stands at around $879.9 million - a figure still quite modest compared to USDT's $148.4 billion and USDC's $62 billion.
To expand its application scope and promote acceptance, PayPal has actively implemented several new strategies for PYUSD. In May 2024, PayPal announced support for PYUSD on the Solana blockchain, allowing high-speed and low-cost transactions. Additionally, the company has collaborated with Anchorage Digital to develop a stablecoin rewards program and linked with MoonPay to expand payment options when purchasing PYUSD with fiat currency.
The SEC's official closure of the investigation without taking any action helps further strengthen confidence in PYUSD's legal compliance, while creating a premise for PayPal to continue expanding its position in this increasingly fierce stablecoin competitive landscape.
