PayPal faces SEC action related to PYUSD stablecoin: Report

Payment huge PayPal has actually gotten a subpoena from the United States Securities and Exchange Commission (SEC) regarding its U.S. dollar-pegged stablecoin.The Enforcement department of the SEC has actually sent out a subpoena to PayPal related to its PayPal USD (PYUSD) stablecoin, the company disclosed on Nov. 2, according to a report by Reuters.The action comes about three months after PayPal released its PYUSD stablecoin in early August. The stablecoin is issued by Paxos Trust and backed by U.S. dollar deposits, short-term Treasurys and comparable money equivalents. PYUSD is based on the Ethereum blockchain and is aimed at managing digital payments and Web3.According to a spokesperson for Paxos, PYUSD has seen an effective rollout up until now, reaching a $150 million market capitalization in just 2 months given that its launch. At the time of composing, the market cap of PYUSD is valued at about $159 million, with $2.7 million of daily trades, according to information from CoinGecko.PayPal USD (PYUSD) stablecoin details. Source: CoinGeckoPayPal and Paxos did not right away react to Cointelegraphs demand for comment.The sharp rise in the adoption of PayPal USD came in the middle of significant exchanges like Coinbase, Crypto.com, Bitstamp and Kraken noting the stablecoin on their platforms right after its launch. In September, PayPal revealed the upcoming combination of the PYUSD stablecoin into Venmo mobile payment service, permitting users to purchase PYUSD and send it to good friends and family.Apart from strongly moving into crypto in the United States, PayPal has actually been also advancing with crypto initiatives in other nations. On Oct. 31, PayPal got a license from the United Kingdom Financial Conduct Authority to provide crypto services in the country.Related: Gary Gensler teases details of SECs $5B take from enforcement actions, shades cryptoThe most current SEC action against PayPal is yet another evidence that the U.S. federal government does not welcome crypto-related organizations much. The regulator has serially taken legal action against a few of the biggest local business in the market, including the ongoing suit against Coinbase exchange. In October 2023, the SEC lastly moved to dismiss its three-year suit versus Ripple, a business behind XRP (XRP), among the biggest cryptocurrencies by market cap.In April 2023, Circle CEO Jeremy Allaire argued that a cryptocurrency crackdown by U.S. regulators has been a substantial aspect behind the declining market capitalization of Circles USDC (USDC) stablecoin.Magazine: Crypto guideline– Does SEC Chair Gary Gensler have the last say?