US SEC Drops Case Against PayPal’s PYUSD

The United States Securities and Exchange Commission (SEC) has discontinued its investigation into PayPal’s PYUSD stablecoin. The regulatory body disclosed its decision in a filing made on Tuesday, stating that it would not pursue any enforcement action in this matter.

This resolution represents a significant victory for the cryptocurrency industry, adding to its recent positive outcomes in a series of legal challenges.

PayPal, the payments conglomerate, formally announced on April 29 that the SEC had dropped its inquiry into PYUSD, which is backed by the U.S. dollar. According to PayPal’s statement, the SEC communicated its decision to conclude the case earlier in the year.

PayPal Wins a Major Victory

In November 2023, the SEC’s enforcement team first inquired about PayPal’s stablecoin plan. Then, in February 2025, the SEC informed the company that it had decided to end the case, stating clearly that it would “not take any action.”

The agency’s choice to drop the PayPal PYUSD case has brought much relief, not just to PayPal but also to the larger cryptocurrency world. Still, the future of stablecoins is uncertain because there are no clear rules.

U.S. President Donald Trump signed the STABLE Act to establish rules for USD-backed stablecoins, such as Tether (USDT) and Circle (USDC). However, the stablecoin sector struggles with unclear regulations and related issues despite this law.

The SEC’s decision to end the PayPal investigation is a positive sign for the crypto industry, potentially indicating a shift toward more lenient regulations.

Under the Trump administration, the SEC is using a new plan for the cryptocurrency industry. The agency has dropped some lawsuits, including those involving Robinhood, Coinbase, and Kraken, which makes the crypto community feel more hopeful.

PayPal US Merchant Gains Crypto Service

A CoinTab report in September 2024 states that PayPal allows U.S. businesses to buy, sell, and hold crypto. Before this, the company only allowed individual users to use crypto through their PayPal and Venmo accounts.

The announcement triggered a new beginning for U.S. business account holders who want to move crypto to external wallets. They can also get crypto from other blockchain wallet addresses.

Jose Fernandez da Ponte, a senior vice president at PayPal, said that adding crypto to PayPal in 2020 helped the company learn more about the crypto market, which enabled them to make more changes, like this new one.

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