PayPal PYUSD Hits Major Win As US SEC Drops Case

In an astounding development within the crypto industry, the US Securities and Exchange Commission (SEC) dropped its investigation into PayPal’s PYUSD stablecoin. In a Tuesday filing, the SEC revealed its decision to close the investigation without pursuing any enforcement action.

Notably, this marks another major triumph for the crypto industry, building on its recent successes in multiple lawsuits.

SEC Closes Investigation into PayPal PYUSD

In an April 29 filing, payments giant PayPal revealed that the US SEC dropped its investigation into the US dollar-backed stablecoin, PYUSD. As noted by PayPal, the SEC confirmed its decision to end the case earlier this year.

Reportedly, PayPal received a subpoena from the SEC’s Division of Enforcement over its stablecoin in November 2023. In February 2025, the SEC informed the firm that they have decided to close the case “without enforcement action.”

Uncertainty Prevails Despite PayPal Case Dismissal

Significantly, the agency’s decision to withdraw the PayPal PYUSD case has brought a sense of relief for the platform as well as the whole crypto industry. However, the future of stablecoins remains uncertain due to the lack of regulatory clarity.

Recently, US President Donald Trump passed the STABLE Act, setting regulatory guidelines for USD-backed stablecoins like Tether (USDT) and Circle (USDC). Despite this, the stablecoin space faces regulatory uncertainty and issues. However, the SEC’s decision to drop the investigation is seen as a positive development for the crypto industry, indicating a shift towards lighter regulatory oversight.

SEC Shifts Gears: Easing Regulations in the Crypto Space

Under Donald Trump, the SEC is taking a renewed approach to the crypto industry. Sparking optimism within the crypto space, the agency dismissed multiple lawsuits, including Robinhood, Coinbase, and Kraken. The high-profile XRP lawsuit has also been settled, awaiting official confirmation from the commission.