This digital currency is under attack
After launching its new stablecoin, PYUSD. PayPal revealed that the US Securities and Exchange Commission (SEC) has subpoenaed the company in relation to the stablecoin. PayPal said in its Form 10-Q for the fiscal third quarter that it was required to file documents with the Securities and Exchange Commission and that it was "cooperating" with the securities regulator.
On November 1, 2023, we received a subpoena from the SEC’s Enforcement Division regarding the PayPal USD stablecoin,” the filing notes. “The subpoena requests the production of documents. We are cooperating with the Securities and Exchange Commission regarding this application.
The filing also notes that PayPal allows its customers to buy, hold, sell, transfer, receive and send Bitcoin, Ethereum, Bitcoin Cash, Litecoin and the stablecoin PYUSD. Additionally, the document states that in August 2023, PayPal partnered with third-party issuer Paxos to issue PYUSD, then launched it to Venmo customers in September 2023.
“We have selected custody and issuer partners for PYUSD,” the 10-Q filing adds. In the future, we may select additional custody partners and stablecoin issuing entities. Which are subject to regulatory oversight, capital requirements, and maintain industry certifications for auditing and compliance. Cybersecurity procedures and policies.”
PayPal's earnings report comes after the company received approval from the UK's Financial Conduct Authority. After recently pausing cryptocurrency purchases in the UK. PayPal is expected to resume its services after obtaining regulatory approval. However, the company may not be able to add new customers in the future.
