The U.S. Securities and Exchange Commission (SEC) has concluded its investigation into PayPal's stablecoin, PayPal USD (PYUSD), and will not pursue any enforcement actions. In a regulatory filing on April 29, PayPal revealed that it had received a subpoena from the SEC's Division of Enforcement in November 2023, requesting the production of documents. However, the SEC notified PayPal in February that it was closing the inquiry without further action. PayPal's stablecoin is designed to be fully backed by U.S. dollars and other liquid assets but has struggled to gain significant market traction, with a current market capitalization of $880 million, significantly less than competitors like Tether. Despite challenges, the circulating supply of PYUSD has increased by 75% since early 2025, and PayPal has introduced rewards for users holding PYUSD. Additionally, a partnership with Coinbase aims to enhance the adoption of the stablecoin. The payments giant reported a strong first quarter, surpassing earnings expectations with $7.8 billion in revenue, marking a 1% increase from the previous year.

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