PayPal Says SEC Drops Probe Into Its Dollar-Pegged Stablecoin

The US Securities and Exchange Commission (SEC) has officially ended its investigation into PayPal’s US dollar-pegged stablecoin, PYUSD, without taking any enforcement action, the payments company disclosed in a regulatory filing on April 29.

The inquiry, which began in November 2023, followed a subpoena from the SEC’s Division of Enforcement requesting documents related to the stablecoin.

PayPal confirmed at the time that it was cooperating with the regulator. In its latest filing, the company said it was informed in February that the SEC would be closing the case.

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PayPal Launches Stablecoin In 2023

Launched in August 2023, PayPal’s stablecoin is marketed as fully backed and redeemable for US dollars, supported by deposits in cash and short-term treasuries.

Despite the backing and PayPal’s prominent position in the digital payments space, PYUSD has struggled to compete in a market dominated by industry leaders like Tether and Circle.

With a current market capitalization of approximately $880 million, PYUSD holds less than 1% of Tether’s $148.5 billion in circulation.

However, there have been signs of renewed momentum. Since the start of 2025, PYUSD’s circulating supply has grown by 75%, according to data from CoinGecko, though it remains 14% below its peak in August 2024.

The boost comes amid new initiatives aimed at increasing adoption, including a loyalty program announced on April 23 that offers U.S. users 3.7% annual rewards for holding PYUSD.

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