The SEC’s decision to drop its investigation into PayPal’s stablecoin $PYUSD, launched in August 2023, removes a major regulatory hurdle, as the probe began in November 2023 over concerns that stablecoins might be classified as securities under strict investor-protection laws.
$PYUSD, a dollar-backed stablecoin, benefits from this clarity, potentially boosting its adoption, especially since PayPal reported over 430 million active accounts in 2023, offering a vast user base for mainstream crypto integration.
This move aligns with a broader shift in U.S. crypto regulation, as the SEC’s new chair, Paul Atkins, appointed in January 2025, is known for a pro-crypto stance, contrasting with predecessor Gary Gensler’s stricter approach.
