PayPal has disclosed receiving a subpoena from the U.S. SEC concerning its newly launched stablecoin, PYUSD. The digital payments behemoth confirmed cooperation with the regulatory body, supplying requested documentation. The inquiry poses a significant compliance and reputation challenge for PayPal, with potential fines and other penalties on the horizon if PYUSD is classified as a security. Launched in August on the Ethereum platform, PYUSD was intended to enhance PayPal's payment system, enabling seamless transactions and conversions to other cryptocurrencies within the PayPal app.
