The stablecoin was issued in August 2023 making the company the first major tech firm to support digital currencies for payments and transfers.
“On November 1, 2023, we received a subpoena from the U.S. SEC Division of Enforcement relating to PayPal USD stablecoin. The subpoena requests the production of documents. We are cooperating with the SEC in connection with this request,” the SEC filing indicates.
PayPal also indicated in its Q3 filing that it has “received Civil Investigative Demands (CIDs) from the Consumer Financial Protection Bureau (CFPB) related to Venmo’s unauthorized funds transfers and collections processes, and related matters, including treatment of consumers who request payments but accidentally designate an unintended recipient. We are cooperating with the CFPB in connection with these CIDs.”
PYUSD is currently trading at a market cap of $158.7 million.
Read Next: Global Banking Agency Has A Warning For Stablecoins
SEC Actions
SEC Chair Gary Gensler said that stablecoins may be securities and therefore subject to the regulator’s strict investor protection and disclosure rules, as reported by Bloomberg.
Leadership Change
Now Read: Trading Strategies For PayPal Stock Before And After Q3 Earnings
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