SEC Resolves Investigation into PayPal’s PYUSD Stablecoin

The U.S. Securities and Exchange Commission (SEC) has closed its investigation into PayPal’s PYUSD stablecoin without taking any enforcement action. The SEC notified PayPal of the conclusion in February 2025, following a subpoena issued in November 2023, according to a document released by PayPal. While the investigation is over, PayPal cautions that future regulatory changes could introduce new compliance burdens for stablecoin issuers. Moreover, legal troubles facing partners or any misuse of PYUSD for illicit activities could result in reputational harm. This resolution may offer some relief to institutions concerned about stablecoin regulation.