The United States Securities and Exchange Commission (SEC) has issued a subpoena to global payment giant, PayPal over its newly launched stablecoin, PYUSD.
On Nov 2, PayPal Holdings announced that it received a subpoena from the enforcement arm of the SEC tied to its U.S. dollar stablecoin according to a Reuters report.
The company launched PYUSD in August becoming the first major traditional finance firm to float a stablecoin with promises to offer new use-cases and projections to compete in the competitive market.
“On November 1, 2023, we received a subpoena from the U.S. SEC Division of Enforcement relating to PayPal USD stablecoin. The subpoena requests the production of documents. We are cooperating with the SEC in connection with this request,” a section of the firm’s quarterly earnings read.
Although the nature of the subpoena and documents requested remains unclear, many crypto users have drawn inferences from the SEC’s hard stance on the market in recent months while others view it as a move to ensure regulatory compliance.
This is a developing story.
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