PayPal Gets Caught in the Crosshairs U.S. SEC Subpoenas USD Stablecoin

# PayPal Subpoenaed by SEC for Documentation on its USD Stablecoin

In a surprising turn of events, PayPal (PYPL) has found itself at the center of attention once again. The global payments giant recently disclosed that it has received a subpoena from the U.S. Securities and Exchange Commission (SEC), demanding documentation about its USD stablecoin[^1^]. You know, the kind of stablecoin that keeps things as steady as a rock in a stormy sea.

## The Great Stablecoin Saga

PayPal made its grand entrance into the stablecoin market with its own version of a U.S. dollar-pegged stablecoin, known as PayPal USD (PYUSD)[^2^]. Ah yes, just what the world was missing - another stablecoin. But the plot thickens!

According to PayPal's quarterly earnings report, they received this subpoena on November 1, 2023, from the U.S. SEC Division of Enforcement[^1^]. The exact details of the subpoena remain undisclosed, leaving us to conjure up wild scenarios involving undercover agents and secret codes.

## Stirring the Congressional Cauldron

Now, why would this raise concerns in Washington, you might ask? Well, dear reader, let me take you on a journey back in time to a place known as the Libra stablecoin. A mythical creation dreamed up by Facebook, now known as Meta Platforms (META). Unfortunately for them, their grand plan fizzled out before it could see the light of day[^3^].

Enter PayPal's stablecoin. This audacious move threatened to push a divided Congress even further apart[^4^]. The House Financial Services Committee's ranking Democrat Rep. Maxine Waters, always quick to jump on the tech giant takedown bandwagon, saw this as an opportunity to voice her concerns. She believed that allowing big tech to dominate the stablecoin space would unleash a wrath upon the world that even Zeus himself would tremble at. And now, she had a real-life example to wave around like a magic wand of doom[^4^].

## Circle of Intervention

But wait, there's more! In the midst of PayPal's stablecoin commotion, stablecoin issuer Circle decided to waltz into the SEC's case against Binance and throw in their two cents[^5^]. They argued that stablecoins should be exempt from traditional financial trading laws[^5^]. After all, stablecoins are a breed of their own, like unicorns prancing through a field of tulips.

## Beyond the Stablecoin Universe

So, what about this PYUSD? Well, my friend, it's an Ethereum-based token, much like a digital chameleon blending seamlessly into the online-payments landscape[^6^]. PayPal has been allowing customers to buy and sell cryptocurrencies since 2020. Then, in a bold move, they extended this service to the Venmo app, ensuring that no crypto enthusiasts would be left behind[^6^]. To top it off, they even threw in the ability to transfer crypto assets to third-party wallets and expanded this capability to Venmo a few months later[^6^]. It's like they're playing a never-ending game of "Crypto Expansion: The Sequel."

## The Conclusion, or Lack Thereof

Alas, dear reader, the story continues to unfold, with PayPal in the spotlight and the SEC relentlessly pursuing their quest for documentation. What will become of this saga? Only time will tell. Until then, let's sit back, grab a cup of coffee, and continue to navigate the ever-exciting world of digital assets and their misadventures.

*Read More: [PayPal to Issue Dollar-Pegged Crypto Stablecoin Based on Ethereum](https://example.com)*

*UPDATE (Nov. 2, 2023, 11:25 UTC):* Adds background throughout; corrects date of filing to Wednesday.

*Edit by Sheldon Reback*