The United States’ (US’) Securities and Exchange Commission (SEC) has issued a subpoena to PayPal concerning its stablecoin, PYUSD, as part of a crackdown on crypto.
A subpoena is a legal order that requires a person or an entity to appear in the court, testify, or submit certain documentation needed for proceedings
A news report from Beingcrypto.com, an online medium, indicated that this year, the commission had revved up its crackdown crypto operators, targeting the crypto ecosystem and filing lawsuits against various firms, while some crypto businesses had to withdraw their business from the United States.
PayPal, in its latest quarterly report, confirmed that it had received a subpoena from the SEC regarding its stablecoin tied to US dollars.
It reported: “On Nov. 1, 2023, we received a subpoena from the US 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.”
It would be recalled PayPal launched its stablecoin, PYUSD, in August by partnering with Paxos, the issuer of Binance’s stablecoin, BUSD..
A month later, it released a transparency report reflecting that the total assets held in custody met or exceeded the token balance.
To boost PYUSD adoption, PayPal partnered the crypto exchange Crypto.com, making it the preferred exchange for PYUSD.
