SEC Backs Off PayPal Stablecoin Probe—Big Tech’s Crypto Play Gets Green Light

Regulators fold their hand—again. The SEC quietly drops its investigation into PayPal’s stablecoin, clearing the way for fintech giants to go all-in on crypto.

Wall Street’s worst-kept secret

After months of scrutiny, the SEC’s retreat signals what insiders knew all along: even watchdogs won’t stand in the way of corporate crypto adoption when there’s revenue at stake.

The real winners?
Traders dodging volatility with PYUSD and compliance officers who just got 50% fewer headaches. Meanwhile, Bitcoin maxis grumble about ’another fiat Trojan horse’—as if they weren’t stacking Tether by the billions.

One banking exec’s cocktail napkin math puts PayPal’s potential crypto revenue at ’$3B before regulators finish their next round of golf.’ Your move, BlackRock.

Despite limited adoption so far, the company is promoting the token for peer-to-peer transfers and merchant checkouts. Executives view stablecoins as a key part of the future financial infrastructure, with plans to expand integration across PayPal’s suite of services. Coinbase has also joined the effort by removing fees for PYUSD transactions, signaling growing momentum for the token’s role in mainstream digital payments.

PayPal’s earnings for the first quarter showed modest growth, with revenues reaching $7.79 billion. Though the report didn’t detail PYUSD-specific usage, it did note the adoption of updated accounting standards for crypto assets.