PayPal Receives SEC Subpoena over US Dollar-Pegged Stablecoin PYUSD
Summary:
PayPal has disclosed the receipt of a subpoena from the U.S. Securities and Exchange Commission (SEC) relating to its U.S. dollar-based stablecoin, PYUSD. This comes several months following the launching of the stablecoin in August. The Ethereum blockchain-based PYUSD, issued by the Paxos Trust, sustains digital payments and backs Web3. Both firms have not yet responded to the matter. More information is expected as this developing situation progresses.
In a recent development, financial heavyweight, PayPal, has acknowledged receipt of a subpoena from the U.S. Securities and Exchange Commission (SEC) which pertains to its stablecoin pegged to the U.S. dollar. The news came to light on Nov. 2 when PayPal revealed that the SEC's Enforcement division had issued a subpoena in terms of PayPal's PYUSD stablecoin, as per a Reuters report. The move by the SEC follows on the heels of PayPal's August launch of its PYUSD stablecoin. Paxos Trust is the issuer of the stablecoin with backing from U.S. dollar deposits, short-term Treasury certificates, and other alike cash assets. It operates on the Ethereum blockchain and serves the goal of managing digital transactions and supporting Web3. Both PayPal and Paxos have yet to issue a comment on the matter. Details will continue to emerge as the story unfolds.
Published At
11/2/2023 10:34:47 AM
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