Serrari Group

In a significant development, global payments giant PayPal finds itself under the watchful eye of the United States Securities and Exchange Commission (SEC), as the regulatory body issues a subpoena regarding PayPal USD (PYUSD), the company’s U.S. dollar-pegged stablecoin. This move marks the latest example of the growing regulatory scrutiny that stablecoins are facing in the United States.

Stablecoins are a category of cryptocurrency designed to maintain a stable value by being pegged to a fiat currency, such as the U.S. dollar. This stability makes them a preferred choice for various financial transactions and transfers.

Back in August 2023, PayPal joined hands with Paxos Trust Company to introduce PYUSD. This stablecoin derives its value from U.S. dollar deposits and is actively traded for goods and services on PayPal and Venmo.

The SEC’s issuance of a subpoena to PayPal is part of a broader effort by U.S. regulators to tighten their grip on the stablecoin market. The SEC has long harbored concerns regarding the potential risks posed by stablecoins to the overall financial stability, prompting them to work on a regulatory framework tailored to govern these digital assets.

The investigation into PayPal’s stablecoin is expected to raise concerns within the stablecoin industry, as the specific focus of the SEC’s probe remains undisclosed. Nevertheless, it does hint at the likelihood of new regulations looming on the horizon for stablecoins within the United States.

This investigation into PayPal is particularly noteworthy because the company was the first major U.S. financial institution to introduce a stablecoin. This move underscores regulators’ keen interest in this emerging asset class and their readiness to take necessary measures if they perceive any threats to the financial system.

At the same time, this investigation unfolds against the backdrop of stablecoins gaining popularity worldwide. Hong Kong and the European Union have been actively working on regulatory frameworks for these digital assets. Additionally, several fintech firms are innovating new stablecoin-based products and services.

The outcome of the SEC’s inquiry could significantly shape the trajectory of stablecoins in the United States. Should the SEC determine that these digital assets indeed pose a substantial risk to financial stability, it may result in the implementation of new regulations, potentially making it more challenging for fintech companies to develop and offer stablecoin-related products and services.

Photo (; Oleksandr/; Paypal/

Delino Gayweh
Serrari Financial Analyst
November 6, 2023

Share this article:
Article and News Disclaimer

The information provided on is for general informational purposes only. While we strive to keep the information up to date and accurate, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk. is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information on the website is provided on an "as-is" basis, with no guarantee of completeness, accuracy, timeliness, or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

In no event will be liable to you or anyone else for any decision made or action taken in reliance on the information provided on the website or for any consequential, special, or similar damages, even if advised of the possibility of such damages.

The articles, news, and information presented on reflect the opinions of the respective authors and contributors and do not necessarily represent the views of the website or its management. Any views or opinions expressed are solely those of the individual authors and do not represent the website's views or opinions as a whole.

The content on may include links to external websites, which are provided for convenience and informational purposes only. We have no control over the nature, content, and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorsement of the views expressed within them.

Every effort is made to keep the website up and running smoothly. However, takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.

Please note that laws, regulations, and information can change rapidly, and we advise you to conduct further research and seek professional advice when necessary.

By using, you agree to this disclaimer and its terms. If you do not agree with this disclaimer, please do not use the website., reserves the right to update, modify, or remove any part of this disclaimer without prior notice. It is your responsibility to review this disclaimer periodically for changes.

Serrari Group 2023