SEC, PayPal stablecoin PYUSD investigation concluded…No additional action

PayPal's Stablecoin PYUSD (Source: Crypto.com)

The United States Securities and Exchange Commission (SEC) has officially concluded its investigation into PayPal's stablecoin PYUSD. According to Crypto News, PayPal stated in a statement on April 29 (local time) that "The SEC had requested the submission of documents related to PYUSD in November last year and initiated an investigation, but finally concluded the investigation in February this year and decided not to take any separate action."

The SEC had noted whether the issuance structure and distribution method of PYUSD at the time violated securities law, but after approximately three months of review, it determined that there was no violation. Accordingly, PayPal has taken a breather from the regulatory risks surrounding its stablecoin business.

Currently, PYUSD is issued in collaboration with Paxos and is designed with a structure linked 1:1 with the dollar. It is also evaluated that this SEC decision could act as a positive signal for the overall stablecoin market.