PayPal (PYPL), an online payments firm, disclosed that it received a subpoena from the U.S. Securities and Exchange Commission’s Division of Enforcement. The regulator is investigating PayPal USD Stablecoin (PYUSD-USD).
PayPal has a Stablecoin that is backed by U.S. dollar deposits, short-term U.S. Treasuries, and various cash equivalents. Customers may buy USD and transfer the digital currency from PayPal to compatible external wallets. The site also supports person-to-person payments.
After the SEC lost its case against Grayscale Investments in a federal appeals court, the regulator may get nowhere as it scrutinizes PayPal. PayPal has a legitimate project to support the exchange between cryptocurrency and USD. The firm is highly reputable and is publicly traded. Its support for crypto is a bullish development for both the firm and Stablecoin in general.
Your Takeaway
2022 was a damaging year for cryptocurrency platforms. Many scams took them down, causing millions of customers to lose their holdings. However, the days of venture-capital-backed crypto schemes have come to an end. PayPal’s offering gives customers another option in transferring crypto to fiat currency. In doing so, it collects a small fee, which is a critical revenue source.
PayPal is struggling to grow its business in its current form. The availability of PayPal crypto is a welcome development.
