PayPal
has recently gone under the scrutiny of the United States Securities and
Exchange Commission (SEC) as the Enforcement division issued a subpoena related
to its U.S. dollar-pegged stablecoin. The revelation of the SEC’s action came
to light on November 2, according to a report by Reuters.
This
development occurs approximately three months after PayPal introduced its own
PYUSD stablecoin in early August. PYUSD is issued by Paxos Trust and is backed
by a reserve of U.S. dollar deposits, short-term Treasurys, and similar cash
equivalents. Operating on the Ethereum blockchain, PYUSD has been designed with
the intention of facilitating digital payments and contributing to the Web3
ecosystem.
The
exact nature and focus of the SEC’s inquiry remain undisclosed. However,
regulatory authorities have been scrutinizing stablecoins and their operations
in the United States, emphasizing the need for compliance with existing
financial regulations.
PayPal
has recently gone under the scrutiny of the United States Securities and
Exchange Commission (SEC) as the Enforcement division issued a subpoena related
to its U.S. dollar-pegged stablecoin. The revelation of the SEC’s action came
to light on November 2, according to a report by Reuters.
This
development occurs approximately three months after PayPal introduced its own
PYUSD stablecoin in early August. PYUSD is issued by Paxos Trust and is backed
by a reserve of U.S. dollar deposits, short-term Treasurys, and similar cash
equivalents. Operating on the Ethereum blockchain, PYUSD has been designed with
the intention of facilitating digital payments and contributing to the Web3
ecosystem.
The
exact nature and focus of the SEC’s inquiry remain undisclosed. However,
regulatory authorities have been scrutinizing stablecoins and their operations
in the United States, emphasizing the need for compliance with existing
financial regulations.
