The U.S. Securities and Exchange Commission (SEC) has concluded a 16-month investigation into Paypal as relevant regulations grow momentum in Congress, while financial regulators relax control over the cryptocurrency industry.
SEC’s Stablecoin Investigation on Dropping PayPal
Paypal revealed that the US SEC put its investigation into Pyusd Stablecoin without execution. After nearly a year and a half of regulatory review, the company disclosed in a 10-Q document on Tuesday that the committee terminated its investigation two months ago.
In November 2023, the payment giant received a subpoena from the SEC law enforcement agency requesting “production documents” related to PayPal USD Stablecoin. This request usually requires documents, internal communication, testimony, and other evidence related to the investigation.
Paypal shared the news in its last quarter report, noting that the company “works with the SEC on this request.” Still, the regulator told the payment company that Paypal revealed on April 29 that in February 2025, the payment company “it is closing its inquiries without law enforcement action.”
PayPal discloses conclusion of SEC's probe in 10-Q filing. Source: US SEC
It is worth noting that the commission began to revoke or end crypto-related cases the same month, citing the recent creation of crypto task force may affect and facilitate the potential resolution of the case.
Led by Commissioner Hester Peirce, the task force was formed in late January to help develop a regulatory framework for crypto assets. Since then, the SEC has announced a 60-day pause in opposition to cryptocurrency exchanges and Gemini.
Subsequently, the regulator subsequently dismissed the lawsuit against Coinbase, Kraken and Consensys, as well as the conclusions of the investigation into Robinhood, Uniswap Labs, Crypto.com, Crypto.com, etc., without enforcement action.
Stablecoin adjusts to obtain momentum
The U.S. regulatory shift is a promise of President Donald Trump to make the U.S. “The crypto capital of the earth.” As a result, the U.S. Securities and Exchange Commission and the Department of Justice (DOJ) dissolved units focused on crypto enforcement and changed their approach to “passing enforcement regulations”.
In addition, U.S. lawmakers have proposed crypto-related legislation at the state and federal levels, including Strategic Bitcoin Reserve (SBR) billing and Stablecoin regulations. Previously, Bank of America CEO Brian Moynihan asserted that the U.S. banking industry is ready to accept cryptocurrencies, confirming that his bank will issue stablecoin if a legal framework is established.
Senate Majority Leader John Thune told Republican lawmakers to work behind closed doors that the Chamber of Commerce will vote on the Stablecoin bill before the Memorial Day holiday on May 26, a report from Politico said.
In February, U.S. Senator Bill Hagerty introduced the guidance and establishment of national innovations to address the U.S. Stability Act (Genius) Act. The proposed legislation aims to develop a framework to allow tokens such as USDT and USDC to fall under Fed rules.
The bill will create a “safety and growth regulatory framework that will unleash innovation and promote the president’s mission to make the United States a global crypto capital.”
Total crypto market capitalization is at $2.87 trillion in the one-week chart. Source: TOTAL on TradingView
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