PayPal Receives SEC Subpoena Focused on Stablecoin Work

PayPal received a subpoena from the US Securities and Exchange Commission's division of enforcement related to its work on a dollar-linked stablecoin. From a report: The subpoena asked PayPal to produce documents tied to the project, according to a regulatory filing on Thursday. The company is cooperating with the probe, the filing said. PayPal unveiled the stablecoin, known as PayPal USD (PYUSD), in August. The coin is pegged to the dollar and fully backed by US dollar deposits, short-term Treasuries and similar cash equivalents, the San Jose, California-based payments company said at the time. The coin has a market capitalization of about $158 million, according to CoinGecko data.

For years, US regulators have been scrutinizing stablecoins. Their concerns are twofold: They worry that if a stablecoin crashes, it could trigger fire sales of other assets as their backers try to maintain a peg. They also fear that if stablecoins prove their worth, they could undermine the power of central banks and more easily enable criminals to engage in money laundering.

no way to win

[Zangief]

it's hilarious the SEC is worried whether stablecoins fail or succeed

hilarious but good

Re:

[Local ID10T]

the SEC is worried whether stablecoins fail or succeed

It's almost like their job is to be proactive about possible problems that might effect securities. Huh.

Actually scared because...

[presidenteloco]

It's something new, and they don't control it.

Small timers

[cusco]

they could undermine the power of central banks and more easily enable criminals to engage in money laundering

I suppose the big banks don't want the competition, but really only small timers use electronic currencies. The $158 million market cap of this is barely a couple of large cocaine shipments. The big boys all launder their money through CiticCorp, JP Morgan, etc. the NYSE, and shell companies, it's a huge business for which they pay 10-15% off the top to have it smelling clean as fresh laundry. If

How is this their business?

[cfalcon]

Stable coins aren't securities, as defined by the Howey test.

Is there is the investment of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others?
Of course not. If you buy one PYUSD or one billion PYUSD, you are expecting that it will be tradable for an exact equivalent amount of dollars in the future.
It would require incredibly twisting the definition of debt security, right? How is any of this their business?

Their stated reasons are not really in t

Re:

[Fly Swatter]

If you are listed on a stock exchange as a publicly traded company your company and all that it does is under the jurisdiction of the SEC. If they think something may be misrepresenting or misleading public shareholders of the company they can haul your company in and ask questions for clarification.

The concern is people shouldn't be free?

[Murdoch5]

The first concern about destabilization is fine, but the second one is just: “If we don't control the money, people can do things, and not be taxed to death."

The argument is really, “We want your money through taxes, and stablecoins prevent us from doing that.” If the government is going to this length to steal your money, what are you getting for it? Taxes keep going up, but we're getting less, and much less. Canada just sent a wack of money to Ukraine, when its own people are starvi

It Will Happen Sooner or Later

[Press2ToContinue]

The central banks are doomed. Power to the blockchain.