The U.S. Securities and Exchange Commission (SEC) has closed its investigation into PayPal’s stablecoin Pyusd without taking any further action, according to an announcement by the FinTech company.
This update, which was tacitly announced in the company's earnings report for the first quarter of 2025, marks a significant moment for the growing crypto ambitions of PayPal.
Pyusd, which was launched mid-2023 in partnership with Paxos, had come under scrutiny from U.S. regulators shortly after its introduction. While the reasons for the SEC's investigation were never disclosed, the announcement confirms that the commission has completed its examination and will not pursue any further measures.
With this obstacle removed, PayPayl can now proceed more freely with its plans to integrate blockchain-based payments into everyday life.
PayPal has been steadily expanding its crypto offerings, including enabling users to buy and sell digital assets such as Bitcoin and Ethereum. However, the stablecoin initiative remains a central part of the company's long-term vision.
PYUSD is pegged to the U.S. dollar, backed by reserves and short-term government bonds, and is designed for fast and low-cost payments.
Despite limited adoption so far, the company promotes the token for peer-to-peer transfers and merchant payments. The managers view stablecoins as a crucial component of the future financial infrastructure and aim to expand integration throughout PayPal's services.
Coinbase also joined this initiative and waived fees for PYUSD transactions, highlighting the increasing role of the tokens in mainstream payment transactions.
PayPal's first-quarter results showed moderate growth with sales of $7.79 billion. The report did not include any detailed figures on PYUSD usage but mentioned the introduction of updated accounting standards for crypto-assets.
