PayPal has confirmed that the U.S. Securities and Exchange Commission concluded its investigation into the company’s dollar-pegged stablecoin, PayPal USD (PYUSD). The regulatory agency opted not to pursue any enforcement action, as PayPal disclosed in its quarterly report filed April 29. Background on PYUSD and Paxos OversightPayPal introduced PYUSD in August 2023, positioning it for payments within web3 and various digital transaction environments. The stablecoin is issued and managed by Paxos Trust Company, a firm regulated by the New York State Department of Financial Services (NYDFS). The SEC issued a Wells notice to Paxos in February 2023 concerning Binance USD (BUSD), another stablecoin issued by the company, alleging it was an unregistered security.