The U.S. Securities and Exchange Commission (SEC) has concluded its investigation into PayPal's PYUSD stablecoin without taking any enforcement action. The inquiry, initiated in November 2023, primarily sought internal documents from PayPal regarding the stablecoin's operations. PayPal revealed in a recent filing that the SEC informed them the inquiry was closed as of February, marking the end of a 15-month investigation. The SEC's shift in focus coincides with Congress advancing legislation, including the STABLE and GENIUS Acts, aimed at regulating U.S. dollar-backed stablecoins, demanding full collateralization and approved issuers. The PYUSD stablecoin, launched by Paxos Trust on Ethereum, is supported by short-term Treasuries and cash equivalents. Despite initial hurdles in adoption, it has recently seen a significant increase in market cap, surpassing $880 million. PayPal aims to leverage its extensive merchant network to expand the stablecoin's usage.

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