Reuters: PayPal's stablecoin product subpoenaed by SEC

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SEC Investigating PayPal Stablecoin?

Reuters reported on the evening of November 2nd that PayPal has confirmed receiving a subpoena from the U.S. Securities and Exchange Commission (SEC) regarding its stablecoin product.

PayPal launched the stablecoin "PYUSD" in August this year, marking the first time a major fintech giant has introduced a stablecoin. However, the discussion and market adoption of the stablecoin have been lukewarm since its launch.

Bull Market Catalyst? PayPal Collaborates with Paxos to Launch First Stablecoin: PayPal USDPYUSD

PYUSD Market Cap Slowly Approaching $200 Million

According to CoinMarketCap, the current market cap of PYUSD is $158 million. In October, there was significant growth with a market cap of approximately $40 million on October 1st, representing a fourfold increase in market cap in just one month.

Receiving SEC Subpoena Does Not Imply Being Sued

It is common for the SEC to issue subpoenas to institutions as part of standard procedures for further investigation into potential securities law violations. Typically, institutions provide relevant documents to emphasize their compliance with the law, and receiving a subpoena does not necessarily mean they will face litigation.