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The US Securities and Exchange Commission (SEC) continues to increase its regulatory pressure on the cryptocurrency sector. The US federal regulatory agency has recently sent a subpoena to payment giant PayPal for its stablecoin called PayPal USD (PYUSD).
SEC Now After PayPal USD
SEC, which has been criticized for attempting to regulate the cryptocurrency sector through enforcement by classifying major cryptocurrency exchanges like Binance, Coinbase, cryptocurrency companies like Ripple, and altcoin projects such as XRP (XRP), Cardano (ADA) as securities, is now after payment giant PayPal.
According to Reuters, the US federal regulatory agency has recently sent a subpoena to PayPal, which recently launched its own stablecoin PYUSD. The subpoena means that PayPal’s PYUSD could join the other altcoin projects being sued by SEC.
What is PYUSD?
PYUSD, short for PayPal USD, is a stablecoin project launched by PayPal, marking the company’s second entry into the world of cryptocurrencies. PYUSD follows PayPal’s previous move in 2022, allowing users to purchase major cryptocurrencies such as Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.
As a stablecoin, PYUSD is designed to have a value pegged to the US dollar at a 1:1 ratio and provides users with a digital asset that minimizes price volatility typically associated with other cryptocurrencies. This stability makes PYUSD particularly attractive for daily transactions, as it offers the benefits of blockchain technology without the uncertainty of price fluctuations.
The introduction of PYUSD is significant due to PayPal’s prominent position in the financial sector. With its substantial user base and widespread brand recognition, PayPal has the potential to reach a wider audience with stablecoins and accelerate their adoption in the mainstream. This is especially important considering the trust and reputation that PayPal has built as a reliable and user-friendly online payment platform over the years.
