The American Securities and Exchange committee has closed its investigation into Paypal’s stablecoin, supported by the dollar, Paypal USD (Pyusd), without taking application measures, ending a regulatory chapter that started more than a year ago, the company said.
“In November 2023, we received an assignment from the United States application division on the SEC relating to the USD Stablecoin Paypal.
The Wednesday deposit marks the last move of the dry to abandon surveys and prosecution against cryptographic companies. The regulator has informed more than a dozen companies according to which it would abandon surveys and cases.
Read more: Paypal faces dry assignment on its stablecoin pyusd
Stablecoins – digital tokens set for fiduciary currencies like the US dollar – have become a focal point in the debate on how crypto should be regulated. The regulators have wondered if these instruments resemble titles or funds from the money market, which could attract transmitters such as Circle and Tether to a more in -depth examination. The involvement of Paypal drew additional attention because of its size, brand recognition and reach through traditional and digital finances.
For Paypal, the resolution of the SEC survey deletes an overhang of key regulation while it continues to push more deeply in the blockchain payments. The company launched Pyusd Sur Ethereum in August 2023 as a short-term stablecoin supported by short-term American cash tickets and dollar deposits, designed for use in peer-to-peer payments, trade and decentralized applications.
The news also comes at a time when stablecoins become the hottest trend in Crypto and Tradfi companies. Companies such as Ripple, Mastercard, Visa, Dutch Bank ING and Stripe all join the Stablescoin industry. Ripple would even have offered $ 4 billion or $ 5 billion to buy a stablecoin transmitter circle. Meanwhile, the venture capital company Andreessen Horowitz (A16Z) said that stablecoins are at a “WhatsApp” time for money transfers, with the potential to disturb the payment industry, as instant messaging has done for telephone calls and cross-border SMS.
In the midst of the intensification of competition, Paypal recently declared that he had to start offering American users a yield of 3.7% on the sales of his Pyusd to increase the bet in the Stablecoin wars. According to CoinmarketCap Data, the giant of the payments giant has a market capitalization of $ 887 million, which places it in sixth place among the stablecoin issuers.
Read more: The Stablescoin market could reach 2 t $ by the end of 2028: Standard Charterd
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