Paypal’s Subpoena from SEC Regarding PYUSD Stablecoin
Paypal has revealed that it is currently dealing with the U.S. Securities and Exchange Commission (SEC) regarding its stablecoin asset, PYUSD. This information was disclosed in the company’s latest financial report for the third quarter.
In the report, Paypal stated that it received a subpoena from the SEC Division of Enforcement on November 1, 2023, requesting the production of documents related to Paypal USD stablecoin. The company assured that it is cooperating with the SEC in response to this request.
Details of Paypal’s Involvement with PYUSD
According to the filing, Paypal allows its customers to engage in various activities involving cryptocurrencies such as bitcoin, ethereum, bitcoin cash, litecoin, and PYUSD stablecoin. In August 2023, Paypal partnered with third-party issuer Paxos to launch PYUSD for Venmo customers in September 2023.
The filing also mentioned that Paypal has selected custodian partners and the PYUSD Issuer. The company may choose additional custodian partners and stablecoin issuing entities in the future, subject to regulatory oversight and compliance requirements.
Paypal’s Recent Developments
In addition to its dealings with the SEC, Paypal recently received approval from the Financial Conduct Authority in the United Kingdom. After temporarily pausing crypto purchases in the U.K., it is expected that Paypal will resume its services following this regulatory approval. However, new customer acquisition may be limited moving forward.
Hot Take: The Impact of SEC’s Subpoena on Paypal
The subpoena from the SEC adds a layer of scrutiny to Paypal’s involvement with its stablecoin PYUSD. While the company assures cooperation with the securities regulator, the development may have implications for Paypal’s operations and reputation in the crypto space. It remains to be seen how this situation will unfold and what impact it will have on Paypal’s future plans regarding stablecoins and cryptocurrency services.
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