Payment processor PayPal said it has received a subpoena from the Securities and Exchange Commission (SEC) regarding its PYUSD stablecoin.
"On November 1, 2023, we received a subpoena from the U.S. SEC Division of Enforcement relating to PayPal USD stablecoin," PayPal said in a statement.
In addition, the subpoena from the regulator requests that the company must provide all necessary documents.
The payment system confirmed that it is cooperating fully with the SEC in this matter.
PayPal launched the PayPal USD stablecoin in August 2023. PYUSD is backed by U.S. dollar deposits, short-term U.S. Treasury bills, and similar cash equivalents.
PayPal users in the United States will be able to pay for purchases with PYUSD, transfer stablecoins between PayPal accounts and to external wallets, and convert any PayPal-supported cryptocurrency to and from PYUSD.
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