PayPal Under Regulatory Radar: SEC Issues Subpoena Over Stablecoin (PYUSD)
PayPal is facing increased regulatory scrutiny after revealing a subpoena from the Securities and Exchange Commission (SEC) regarding its dollar-backed stablecoin, PayPal USD (PYUSD). The news underscores the growing attention regulators are paying to the stablecoin market and its potential implications for financial stability.
The Securities and Exchange Commission (SEC) has subpoenaed PayPal over its dollar-backed stablecoin, the company revealed in a regulatory filing Thursday. This marks a significant development in the ongoing debate surrounding the regulation of cryptocurrencies and stablecoins specifically.
According to reports, In their recent quarterly earnings report, PayPal revealed that they had been served with a subpoena from the SEC’s Division of Enforcement on Nov. 1, 2025. The focus appears to be on gathering information related to the issuance and operation of PYUSD.
The SEC's interest in PayPal's stablecoin is not entirely new. Previously, PayPal said in an April 29 regulatory filing that the SEC concluded its investigation into PayPal USD (PYUSD) and wouldn’t be taking any action. The company said In their recent quarterly earnings report, PayPal revealed that they had been served with a subpoena from the SEC’s Division of Enforcement on Nov. 1, 2025. The latest subpoena suggests that the SEC may have uncovered new information or is revisiting the matter with heightened scrutiny. The subpoena requests documentation and information pertaining to the stablecoin, raising questions about its compliance with existing securities laws.
The implications of this subpoena could be far-reaching, not only for PayPal but also for the broader stablecoin market. Increased regulatory pressure could lead to stricter guidelines and oversight, potentially impacting the way stablecoins are designed, issued, and used.
Investors and industry observers are closely watching how PayPal responds to the SEC's inquiries and what impact this regulatory scrutiny will have on the future of PYUSD and the overall stablecoin landscape. The outcome of this investigation could set a precedent for how other stablecoins are regulated in the future.