After launching its stablecoin in August, PayPal became the first major fintech firm to adopt digital currencies for payments and transfers.
PayPal Holdings, a worldwide payments firm expanding into the crypto space, has received a subpoena from the Securities and Exchange Commission (SEC) involving its US dollar stablecoin PayPal USD (PYUSD).
The SEC maintains a strict enforcement stance toward cryptocurrencies despite traditional financial services firms exploring the burgeoning market.
SEC Subpoenas PayPal Before Earnings
In its overnight 10-Q filing, PayPal disclosed that on November 1, it received a subpoena from the SEC regarding its PayPal USD stablecoin.
“On November 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.”
The company launched its PYUSD stablecoin in August, becoming the first major financial technology company to accept digital currencies for payments and transfers.
Surprisingly, the SEC barely got their subpoena regarding PYUSD before PayPal’s quarterly results.
The crypto community reacts to the SEC’s prompt actions to subpoena a brand-new stablecoin issuer.
PayPal Increases Crypto Exposure
After announcing the PYUSD stablecoin in September, PayPal continues to explore crypto and related disciplines.
In September, PayPal announced that, with the integration of PayPal On and Off Ramps, it has taken a step forward in the Web3 space.
Meanwhile, on Wednesday, PayPal UK Limited effectively registered as an official crypto service provider with the UK’s Financial Conduct Authority (FCA).
Although titans such as BlackRock, JPMorgan, and Goldman Sachs are interested in the cryptocurrency industry, the SEC remains hesitant to embrace it and continues its enforcement efforts.
