PayPal has announced that the U.S. Securities and Exchange Commission has officially ended its investigation into the company’s U.S. dollar-pegged stablecoin, PYUSD.
According to a regulatory filing submitted by PayPal on April 29, the SEC has wrapped up its review and confirmed it will not pursue any enforcement actions related to the stablecoin.
The investigation began in November 2023 when PayPal received a subpoena from the SEC’s Division of Enforcement, requesting documents related to PYUSD. At the time, PayPal stated it was fully cooperating with the agency’s request.
In the recent filing, PayPal revealed that it was informed in February that the SEC had decided to close the matter without any further action.
PayPal describes PYUSD as being fully backed by U.S. dollar reserves, including cash and short-term treasuries, and states it is completely redeemable for dollars. Despite this, the stablecoin has struggled to gain traction in a competitive market dominated by leaders such as Tether and Circle. Currently, PYUSD holds a market cap of around $880 million—less than 1% of Tether’s $148.5 billion.
Still, 2025 has seen a 75% increase in PYUSD’s circulating supply, based on CoinGecko data. However, it remains below its August 2024 peak of just over $1 billion, down approximately 14%.
PYUSD Adoption and Incentives
Recent developments could help accelerate PYUSD’s adoption. On April 23, PayPal launched a new loyalty program offering U.S. users a 3.7% annual return for holding PYUSD on its platform.
The following day, PayPal announced a collaboration with Coinbase aimed at expanding the use of its stablecoin. “We’re thrilled to explore new and innovative use cases alongside Coinbase and the broader crypto ecosystem,” said PayPal CEO Alex Chriss.
In addition to these announcements, PayPal reported strong financial results for the first quarter, including earnings of $1.33 per share—beating analyst expectations of $1.16. Revenue reached $7.8 billion, up 1% year-over-year. The company also completed significant stock buybacks during the quarter.
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