PayPal Crypto Stable Coin blockchain 3D illustration. Source: amoly - stock.adobe.com

Key Takeaways:

The SEC has officially closed its investigation into PayPal’s PYUSD stablecoin without taking enforcement action.
PYUSD’s supply has surged 75% in 2025, yet its market cap remains under 1% of Tether’s dominance.
PayPal is pushing PYUSD adoption via a 3.7% yield offering and a new partnership with Coinbase.

The U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into PayPal’s U.S. dollar-pegged stablecoin, PayPal USD (PYUSD), with no enforcement action.

The probe began in November 2023 after a subpoena was issued requesting documentation.

💥BREAKING:

SEC ENDS INVESTIGATION INTO PAYPAL’S PYUSD STABLECOIN WITHOUT ENFORCEMENT pic.twitter.com/0feFJwnj5D
— Crypto Rover (@rovercrc) April 30, 2025

It was formally concluded in February 2025, according to a regulatory filing dated April 29.

PYUSD, described by PayPal as “fully backed” and “100% redeemable for U.S. dollars”, has struggled to gain market share against dominant rivals like Tether (USDT) and USD Coin (USDC).

Its current market capitalization stands at approximately $880 million, which is less than 1% of Tether’s $148.5 billion.

Still, 2025 has shown growth, with a 75% increase in circulating supply since January, though it remains 14% below its August 2024 peak.

To boost adoption, PayPal launched a 3.7% annual yield incentive for U.S. users holding PYUSD, and announced a partnership with Coinbase to expand usage.

CEO Alex Chriss highlighted plans for “innovative use cases” in crypto.

In addition, PayPal’s Q1 financials exceeded expectations, reporting $1.33 earnings per share and $7.8 billion in revenue, a 1% year-over-year increase.