Kenne Michael 
The United States Securities and Exchange Commission (SEC) has issued a subpoena to payment titan PayPal regarding its dollar-pegged stablecoin.
According to a report from Reuters, the SEC’s Enforcement division has issued a subpoena to PayPal regarding its PayPal USD stablecoin, the company disclosed on November 2.
The move comes approximately three months after the launch of PayPal’s PYUSD stablecoin in early August.
Paxos Trust issues the stablecoin, which U.S. dollar deposits, short-term Treasurys, and other cash equivalents support.
However, PYUSD is based on the Ethereum blockchain and is designed to handle digital payments and Web3.
According to a Paxos spokesperson, PYUSD has had a successful rollout thus far, attaining a market capitalization of $150 million in the two months since its launch.
According to CoinGecko data, the market cap of PYUSD is approximately $159 million, with a daily trading volume of nearly $2.7 million.
The steep rise in the adoption of PayPal USD came amid major exchanges like Coinbase, Crypto.com, Bitstamp, and Kraken listing the stablecoin on their platforms soon after its launch.
PayPal announced in September that the PYUSD stablecoin would be integrated into the Venmo mobile payment service, enabling users to acquire PYUSD and send it to friends and family.
In addition to PayPal’s aggressive crypto initiatives in the United States, the company’s crypto initiatives in other countries have also advanced.
The United Kingdom Financial Conduct Authority issued PayPal a license on October 31 to offer crypto services in the country.
Meanwhile, the most recent SEC action against PayPal further proves that the U.S. government is not particularly receptive to crypto-related businesses.
The regulator has repeatedly filed lawsuits against some of the industry’s largest local companies, including the ongoing suit against the Coinbase exchange.
In October 2023, the SEC moved to dismiss its three-year lawsuit against Ripple, the corporation behind XRP, the largest cryptocurrency by market capitalization.
Furthermore, in April 2023, Circle’s CEO Jeremy Allaire argued that a crackdown on cryptocurrencies by U.S. regulators has been a significant factor in Circle’s USDC stablecoin’s declining market capitalization.
