JUST IN: PayPal Receives Subpoena

November 2, 2023 11:49 am Comments

PayPal has received a subpoena from the Securities and Exchange Commission (SEC) regarding the PYUSD stablecoin.

The payment processing giant launched its stablecoin a little over three months ago and is already facing scrutiny from the government agency.

Currently, there is really no specific reason as to why the SEC has issued a subpoena to PayPal over their recently issued stablecoin.

PayPal has announced that it is complying with the SEC’s investigation. The crypto community shared various aspects of the subpoena:

Reuters broke the story:

The SEC’s subpoena indicates that the regulator is keeping up pressure on the cryptocurrency industry despite recently losing a high-profile court case against digital asset manager Grayscale Investments.

Businessman Matt Hougan had this to say: “Washington is fine with a credit card oligopoly charging a 2.5% tax on every transaction. But if you dare to issue a stablecoin for payments — which might cut that fee by 90%+ over time — you earn yourself an instant subpoena.”

Crypto Slate had more:

PayPal’s recent subpoena from the SEC, linked to its stablecoin PYUSD, underscores the intricate interplay between fintech innovation and seemingly inconsistent regulatory oversight from the SEC.

It exemplifies the challenges that major firms face as they venture into the evolving realm of digital currencies and the continual adaptation required to navigate the global regulatory landscape.

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