SEC Backs Off PayPal Stablecoin Probe—Another Regulatory Retreat or Just Wall Street Fatigue?
The SEC drops its investigation into PayPal’s dollar-pegged stablecoin—no fines, no charges, just another ’move along, nothing to see here’ moment for crypto oversight.
Regulators fold—again: After months of scrutiny, the SEC quietly shelves its probe into whether PayPal’s stablecoin qualifies as an unregistered security. Cue the usual suspects cheering ’innovation wins’ while skeptics eye the revolving door between regulators and fintech boards.
Bonus jab: Nothing accelerates regulatory clarity like legacy financial giants elbowing into crypto—funny how that works.
PayPal Launches Stablecoin In 2023
Launched in August 2023, PayPal’s stablecoin is marketed as fully backed and redeemable for US dollars, supported by deposits in cash and short-term treasuries.
Despite the backing and PayPal’s prominent position in the digital payments space, PYUSD has struggled to compete in a market dominated by industry leaders like Tether and Circle.
With a current market capitalization of approximately $880 million, PYUSD holds less than 1% of Tether’s $148.5 billion in circulation.
However, there have been signs of renewed momentum. Since the start of 2025, PYUSD’s circulating supply has grown by 75%, according to data from CoinGecko, though it remains 14% below its peak in August 2024.
The boost comes amid new initiatives aimed at increasing adoption, including a loyalty program announced on April 23 that offers U.S. users 3.7% annual rewards for holding PYUSD.
BREAKING:
SEC ENDS INVESTIGATION INTO PAYPAL’S PYUSD STABLECOIN WITHOUT ENFORCEMENT pic.twitter.com/0feFJwnj5D
— Crypto Rover (@rovercrc) April 30, 2025
PayPal also unveiled a strategic partnership with Coinbase on April 24 to drive broader use of the stablecoin.
The regulatory clearance comes as PayPal posts strong Q1 earnings, beating Wall Street expectations with $1.33 per share and generating $7.8 billion in revenue—up 1% from the previous year—while completing significant share buybacks.
Samourai Wallet Case Put On Hold
In another legal win for the crypto industry, federal prosecutors and the defense team for Samourai Wallet co-founders have asked for a delay in court proceedings as both sides weigh the possibility of dismissing the case.
In a letterto US District Judge Richard Berman, attorneys for Samourai Wallet CEO Keonne Rodriguez and CTO William Hill requested a 16-day continuance of the pretrial motion deadlines.
A coalition of 34 crypto firms and advocacy groups is urging Congress to push back against what they call an “unprecedented and overly expansive” legal interpretation used by the US Department of Justice (DOJ) in its case against the developers of crypto mixer Tornado Cash.
In a letter dated 26 March 2025, the group—led by the DeFi Education Fund and co-signed by major industry players including Coinbase and Kraken—warned lawmakers that the DOJ’s current stance could criminalize nearly all blockchain software developers.
Key Takeaways
- The SEC has officially closed its investigation into PayPal’s PYUSD stablecoin without taking enforcement action.
- PYUSD’s supply has grown 75% in 2025, aided by new adoption initiatives like a loyalty rewards program.
- PayPal’s strategic partnerships and strong Q1 earnings signal renewed momentum for its stablecoin ambitions.
