SEC closes PayPal Pyusd research without additional actions

By Hannah Pérez

PayPal is no longer investigated by the SEC in relation to its stablecoin pyusd. It is part of the new agency approach to clarify the rules to the digital asset industry.

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• PayPal reveals that he is no longer investigated by the SEC in relation to his stablecoin pyusd.
• The SEC sent a citation to the firm in November 2023, shortly after the launch of Pyusd.
• The regulator did not issue additional actions, as has done when closing other crypts.
• Paypal, meanwhile, strives to promote the adoption of his token with parity to the dollar.

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The United States Securities Regulator has decided to close another case related to cryptocurrencies as part of its new progressive approach and a measure that advances to establish clearer rules for the sector.

In a regulatory document presented on Tuesday, PayPal He informed that the Bag and Securities Commission (SEC) has abandoned an investigation related to Pyusd, the Stablecoin He introduced the giant of payments almost two years ago.

In November 2023, three months after launch, PayPal He received a summons of the SEC requesting information about his then new Pyusd product. “The citation requests the production of documents“The company said at that time.

SEC’s citations generally serve as a way for the agency to collect information and do not necessarily result in legal actions or compliance, as was precisely in this case.

PayPal He detailed in a 10-Q form that the SEC informed him in February about the closure of the investigation related to the citation sent at the end of 2023 in which documents on Pyusd were requested. The SEC closed the case “No application action”

PayPal is released from regulatory pressure

Launched in 2023, Pyusd is a Stablecoin backed by liquid asset reservations such as United States Treasury bonds and issued by Paxos Trust. PayPal It then became the first financial company established in having its own stable currency.

However, despite the fact that the digital currency has the support of one of the most recognized brands in the Fintech sector, Pyusd’s growth has been limited so far, and its presence continues to be eclipsed by rivals such as USDT of Tether and USDC Circlewhich between them represents more than 87% of the total capitalization of stablcoins of almost USD $ 240 billion.

As a comparison, Pyusd market capitalization is barely USD $ 880 million compared to USD $ 148.4 billion USDT, according to data from Coinmarketcap.

PayPal He has carried out efforts to promote the adoption of his token with parity to the US dollar, including Pyusd’s expansion to additional networks and collaborations with companies such as Digital anchorage and Moonpay.

Last week, the firm strengthened its alliance with Coinbase to eliminate negotiation rates for Pyusd on the platform. Just a few days before, PayPal had announced that it will begin to offer an annual 3.7% yield for Pyusd holders in the United States that maintain balances of the Stablecoin in their wallets of PayPal and Venmo.

The sec leaves behind cryptocurrencies

The closure of the research to Pyusd by the SEC occurs when the agency leaves cases related to cryptocurrencies. Since the previous president of the SEC, Gary Gensler, left his position in January, the agency has assumed a new approach that, under a new internal work group focused on digital assets, seeks more clear guidelines and rules for the industry.

Last Friday, the SEC presented a joint document with Dragochain To dismiss a lawsuit filed by the regulator against that technology company Blockchain almost 3 years ago. The regulator has also abandoned many of its application actions against cryptocurrency companies such as Coinbase, Kraken, Metamask, Uniswap and Ripple

For PayPalthe news about the lower regulatory pressure in the United States could be positive, potentially helping to legitimize its product and promote interest in the international market.

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Hannah Estefanía Pérez / Diariobitcoin

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