PayPal Holdings, a global payments giant expanding deeper into the crypto space, has received a subpoena from the Securities and Exchange Commission (SEC) regarding its U.S. dollar stablecoin PayPal USD (PYUSD). The SEC continues its strict enforcement approach toward crypto amid the traditional financial services companies’ move to explore the burgeoning market.
PayPal Gets SEC Subpoena Before Earnings
PayPal in its 10-Q filed overnight said that it received a subpoena from the SEC regarding its PayPal USD stablecoin on November 1.
“On November 1, 2023, we received a subpoena from the U.S. SEC Division of Enforcement relating to PayPal USD stablecoin. The subpoena requests the production of documents. We are cooperating with the SEC in connection with this request.”
In August, the company launched its PYUSD stablecoin, the first major financial technology firm to embrace digital currencies for payments and transfers.
Surprisingly, the SEC barely got their subpoena regarding PYUSD before PayPal’s quarterly results. SEC’s quick actions to subpoena a brand new stablecoin issuer sparks reactions in the crypto community.
PayPal Deepens Crypto Reach
PayPal continues to explore crypto and related fields, especially after announcing PYUSD stablecoin in
On Wednesday, PayPal UK Limited successfully obtained registration with the UK’s Financial Conduct Authority (FCA) as an official crypto service provider.
However, as giants such as BlackRock, JPMorgan, and Goldman Sachs show interest in the crypto industry, the SEC remains hesitant to embrace it and continues its enforcement actions.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.