In Brief:
- The SEC has ended its investigation into PayPal’s PYUSD stablecoin without taking any enforcement action
- PayPal fully complied with the regulator’s document request after receiving a subpoena in late 2023
- PayPal announced the development in its 2025 Q1 earnings report.
The US Securities and Exchange Commission (SEC) has closed its investigation into PayPal’s stablecoin (PYUSD) without taking any enforcement actions. Following months of uncertainty, the organization announced the development during its Q1 2025 financial report. The SEC launched its investigation into PayPal’s stablecoin in November 2023 and concluded it in February 2025.
PayPal escapes SEC’s scrutiny unblemished
The SEC served PayPal with a subpoena, demanding records relating to its stablecoin activities. The financial service provider provided all investigated data on demand, seemingly suiting the regulator’s standards. In its Q1 2025 financial records report, PayPal announced that the SEC has halted all investigations and waived further inquiries on the situation.
PayPal’s report also related its share repurchase feats to investors during the period. The investigation withdrawal also coincides with a new regulatory era with improved regulatory clarity and pro-crypto policies in the US.
The market reacts to PYUSD’s triumph
News of the SEC’s decision to halt the investigation against PYUSD has seen the asset’s trading volume spike in the short term. Within one hour of the news, PYUSD saw a 47% spike in trading volume on Binance, per Coinmarketcap data.
PYUSD maintains minuscule market access in a stablecoin sector dominated by Tether and Circle. Valued at approximately $880 million in April 2025, PYUSD accounts for only 0.7% of the total market share. It remains to be seen if improved regulatory relief around the asset could drive more investor interest in PayPal’s stablecoin project.
