The U.S. Securities and Exchange Commission (SEC) finished its PayPal stablecoin investigation into PYUSD by taking no enforcement measures.

The U.S. Securities and Exchange Commission (SEC) finished its PayPal stablecoin investigation into PYUSD by taking no enforcement measures.

The U.S. Securities and Exchange Commission (SEC) has finished its investigation into PayPal stablecoin PYUSD without taking any enforcement measures. The organization stated this validation through its Q1 2025 financial statement after several months of speculation.

The SEC began its probe into PYUSD in November 2023 and concluded it in February 2025. It demanded records from PayPal regarding its stablecoin operations and activities.

In response, the company supplied the entire investigative data set that the investigation demanded. According to the latest statement from the SEC, it has officially closed this matter while waving all further investigations.

During Q1 2025, PayPal unveiled its financial results, which exceeded market expectations. At the same time, PayPal presented both financial results and detailed its share repurchase achievements to investors during its period of financial announcement.

Regulatory Cases Draw to a Close

The regulatory probe into digital assets has now drawn to a close as a new regulatory stance emerges regarding digital assets.

In August 2023, PayPal introduced PYUSD to create an authoritative cryptocurrency solution connected with the dollar value.

PYUSD provides its backing through U.S. dollar deposits as well as Treasury bills and equivalent cash assets. Its redemption value matches exactly the U.S. dollar at one unit to one unit.

PYUSD measures low market share in the stablecoin sector, where Tether and Circle control the majority share. The market value of PYUSD amounted to approximately $880 million when measured in April 2025.

The current market value of Tether amounts to $148.5 billion, while PYUSD accounts for only 0.7% of this total.

However, the popularity of the PYUSD stablecoin is increasing as it moves forward in its competition against dominant rivals. Since the beginning of 2025, the supply of the stablecoin has expanded by 75 percent.

At present, the PYUSD total circulation stands just short of the supply levels established in August 2024.

The company also plans to pay U.S. users holding PYUSD 3.7% per year in its loyalty program. By launching this program, PayPal hopes to gain more users and strengthen the stablecoin’s essential role throughout its platform.

The strategy aims to establish PYUSD’s competitiveness against its market competitors.

Moreover, PayPal formed a strategic alliance with Coinbase to enhance the availability of its stablecoin across various platforms and services.

Under this partnership, the companies aim to open digital asset applications using PYUSD as their foundation. The company works to enhance the stablecoin ecosystem and expand usage to reach more users.

The recent clearance allows PayPal to expand the distribution of PYUSD in the digital finance industry. As part of its growth strategy, the company has designed newer user-oriented capabilities.

The planned developments indicate that PYUSD has prospects to succeed in the digital currency market in the long run.