The U.S.-based payment giant PayPal received a court subpoena related to its PYUSD stablecoin, which is currently under regulatory review by the U.S. Securities and Exchange Commission (SEC).
SEC Requests Specific Documents from PayPal
Following PayPal’s announcement earlier today that it had received a court subpoena from the U.S. Securities and Exchange Commission (SEC), the SEC has requested PayPal to provide specific documents for its examination of the PYUSD stablecoin.
“We are collaborating with the SEC.”PayPal officials
What Is PYUSD Stablecoin?
PYUSD stablecoin is a cryptocurrency pegged to the U.S. dollar. This stablecoin is issued by Paxos Trust and is backed by U.S. dollar deposits, short-term Treasury bonds, and similar cash equivalents.
After approximately two months since its launch in August, PYUSD stablecoin reached a market value of around $150 million.
SEC and Stablecoin Reviews
The SEC has been making significant efforts to tighten regulations on cryptocurrency assets and stablecoins in recent times. Previously, in June, the SEC alleged in a lawsuit against Binance that another stablecoin, Binance’s BUSD, issued by Paxos, was an unregistered security.