PYUSD Gets a Green Light as SEC Closes Investigation

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PayPal's PYUSD Gets a Green Light as SEC Closes Investigation

Written by Aaron S.,

Editor-In-Chief

Last Updated: April 30, 2025

Key Takeaways

The SEC has closed its investigation into PayPal’s stablecoin PYUSD with no action taken;
PayPal received a subpoena in November 2023 but cooperated fully during the SEC’s review;
Launched in August 2023, PYUSD is backed by US assets but still trails top rivals in market share.

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PayPal's PYUSD Gets a Green Light as SEC Closes Investigation

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PayPal has confirmed that the US Securities and Exchange Commission (SEC) has officially ended its investigation into PayPal USD (PYUSD), the company’s dollar-backed stablecoin, without taking any enforcement action.

In a filing published on April 29, PayPal shared that the SEC told the company in February that the case was being closed.

This follows a subpoena PayPal received from the SEC’s Division of Enforcement back in November 2023, which requested documents related to the stablecoin. At the time, the company said it was cooperating with the agency.

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PYUSD was introduced in August 2023 as a stablecoin that is fully backed by short-term US Treasury bills, cash, and similar assets. It is designed to be redeemable at a 1:1 ratio with the US dollar. However, the token has faced challenges growing its presence in a market already led by competitors like Tether USDT $0.9997 and Circle.

At the time of writing, PYUSD holds a market cap of around $880 million, which is a small share compared to Tether’s $148.5 billion. Even so, the stablecoin has seen some growth in 2025. Its circulating supply has risen by 75% since the beginning of the year.

To help attract more users, PayPal announced a new rewards feature on April 23. US-based customers can earn a 3.7% annual return for holding PYUSD in their PayPal accounts.

Meanwhile, on April 8, the DeFi Education Fund, a crypto advocacy group, sent a letter to White House crypto adviser David Sacks. What did the letter say? Read the full story.