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:
Also newly disclosed is a CFPB investigation relating to Reg E pic.twitter.com/OiQBqOb4ZP
— Bank Reg Blog (@bank_reg) November 2, 2023
SEC barely got their subpoena about PYUSD in before PayPal’s quarterly results got filed. Seems a bit quick to subpoena a brand new stablecoin issuer
— PaperImperium (@ImperiumPaper) November 2, 2023
PayPal $PYPL said it received a subpoena from the 🇺🇸 SEC Division of Enforcement relating to the PayPal USD stablecoin
The subpoena requests the production of documents, PayPal said it's cooperating with the request
— Evan (@StockMKTNewz) November 2, 2023
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.”
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.https://t.co/zhD0j1Tt1Y
— Matt Hougan (@Matt_Hougan) November 2, 2023
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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