In a breaking crypto update today, PayPal Holdings has received a subpoena from the Securities and Exchange Commission (SEC) regarding its U.S. dollar stablecoin PayPal USD (PYUSD). The SEC continues its strict enforcement approach toward crypto amid the traditional financial services companies’ move to explore the burgeoning market.
PayPal in its 10-Q filed overnight said that it received a subpoena from the SEC regarding its PayPal USD stablecoin on November 1st.
In August, the company launched its PYUSD stablecoin, the first major financial technology firm to embrace digital currencies for payments and transfers.
Surprisingly, the SEC barely got their subpoena regarding PYUSD before PayPal’s quarterly results. SEC’s quick actions to subpoena a brand new stablecoin issuer sparks reactions in the crypto community.
In September, PayPal announced that it has taken a step forward into the Web3 area with its latest introduction of PayPal On and Off Ramps integration. On Wednesday, PayPal UK Limited successfully obtained registration with the UK’s Financial Conduct Authority (FCA) as an official crypto service provider.
However, as giants such as BlackRock, JPMorgan, and Goldman Sachs show interest in the crypto industry, the SEC remains hesitant to embrace it and continues its enforcement actions.