After releasing its stablecoin in August, PayPal became the first significant fintech company to use digital currencies for transfers and payments.

The United States Securities and Exchange Commission (SEC) has issued a subpoena to payment giant PayPal regarding its stablecoin that is tethered to the US dollar.

Regarding its PayPal USD, the Enforcement division of the SEC has sent a subpoena to PayPal. 

Tickers lowering stablecoin, which the company formally revealed in its Q3 financial report filed with the SEC on November 2.

The subpoena, which PayPal received on November 1, asked the company to provide specific documents, according to the statement. PayPal stated, "With regard to this request, we are cooperating with the SEC."

About three months have passed since PayPal's PYUSD stablecoin launch in early August. Paxos Trust is the stablecoin's issuer, and it is backed by short-term Treasury securities, US dollar deposits, and other comparable cash equivalents. PYUSD is designed to manage Web3 and digital payments. It is built on the Ethereum blockchain.

As per the statement provided by a Paxos representative, PYUSD's launch has been successful thus far, as it has amassed a $150 million market value in just two months. According to CoinGecko data, PYUSD's market cap is currently estimated to be worth $159 million, with a daily trading volume of nearly $2.7 million.

PayPal did not reply to Cointelegraph's request for comment right away.

Major exchanges including Coinbase, Crypto.com, Bitstamp, and Kraken listed the stablecoin on their platforms shortly after its inception,

Which coincided with a dramatic increase in the stablecoin's adoption. PayPal said in September that the stablecoin PYUSD will soon be integrated with the Venmo mobile payment service. This will enable users to buy PYUSD and send it to friends and family.

PayPal has been advancing its cryptocurrency activities abroad in addition to its aggressive entry into the US market. The United Kingdom Financial Conduct Authority granted PayPal a licence to provide cryptocurrency services in the nation on October 31.

The most recent SEC action against PayPal provides additional proof that the US presents challenges for cryptocurrency businesses. The regulator is currently suing Coinbase Exchange, one of the biggest local cryptocurrency companies, in addition to numerous other enterprises. The SEC eventually filed to have its three-year case against Ripple, the firm that created XRP, dismissed in October 2023.

Tickers lowering token, the biggest cryptocurrency in terms of market capitalization.

Circle CEO Jeremy Allaire stated in April 2023 that the US government's crackdown on cryptocurrencies was a major reason for the USD Coin's decreasing market value. 

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