From Yahoo Finance: 2025-05-03 10:16:00

The SEC has dropped its investigation of PayPal’s PYUSD stablecoin, signaling a shift in the SEC’s stance on stablecoins. This move comes after a series of crypto-related enforcement actions under former chair Gary Gensler. PayPal is now focusing on expanding its presence in the cryptocurrency industry through PYUSD.

The SEC recently closed the investigation of PYUSD without taking any enforcement action, providing clarity on the regulatory environment for stablecoins. PayPal first received notice of the probe in November 2023 and has since been working towards promoting PYUSD in the market. The decision to end the probe reflects the SEC’s current views on stablecoins.

PayPal’s CEO Alex Chriss highlighted the company’s commitment to bringing the benefits of crypto and stablecoins to customers. The firm recently unveiled a loyalty program for users holding PYUSD, offering annual rewards. Additionally, PayPal announced a partnership with Coinbase to drive the adoption of PYUSD. The company is exploring payment and decentralized finance opportunities for PYUSD.

As stablecoin regulations in the US are set to go live soon, PayPal’s efforts to promote PYUSD align with the evolving regulatory landscape. Despite being a smaller player in the market, PYUSD is gaining traction, especially with partnerships and loyalty programs in place. The collaboration with Coinbase aims to facilitate the trading and redemption of PYUSD, further enhancing its utility in the crypto market.

Read more: SEC Closes PayPal PYUSD Probe As Rollback Of Gensler-Era Crypto Enforcement Barrage Continues