PayPal Survives SEC Drama: What The Government Did Next Will Shock You

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Somewhere in America, in a room smelling faintly of ink and burnt coffee, sat several officials, sifting through mounds of documents, their faces pallid with boredom—a fate arguably worse than trial. The SEC, armed with subpoenas and the patience of saints (or perhaps civil servants), wrapped up its 16-month investigation of PayPal’s USD stablecoin, PYUSD, and—tragedy of tragedies—resolved not to enforce anything at all. It ended with as much sound and fury as a wispy sigh in Petersburg’s winter.

SEC Forgets To Be Angry at PayPal’s Stablecoin

PayPal, in the strangest twist of regulatory theatre, admitted that the SEC finally dropped their precious investigation. Nearly a year and a half—only slightly longer than the average Russian winter—spent in scrutiny. The verdict? In a Tuesday 10-Q filing: “Nothing to see here, comrades.” The probe vanished two months ago, with all the abruptness of an unpaid intern on a Friday afternoon.

November 2023: PayPal, trembling at the knees (not really), receives a subpoena. “Produce all your documents!” shouts the SEC. A request for evidence—files, emails, probably Greg from accounting’s snack receipts—floods in.

Last quarter, PayPal dutifully told the world it was cooperating. But by February 2025: “Never mind, you’re free to go,” said the agents. (One imagines them waving little white handkerchiefs in farewell as PayPal departs, a single tear glimmering in regulatory sunlight.)

Curiously, around that very season, other SEC investigations met similar fates, like dominoes or poorly organized family dinners. The Crypto Task Force—born in late January under Commissioner Hester Peirce’s benevolent gaze—was blamed, or credited, for this flurry of abandoning cases.

Thereafter, a 60-day pause descended on cases against crypto exchanges Binance and Gemini. Coinbase, Kraken, Consensys—all spared. Robinhood and Uniswap Labs—exonerated, or perhaps simply forgotten. A bureaucratic spring cleaning, if you will. 🧹

Stablecoin Laws—Politics and Promise

All this legal springtime, of course, blossomed under President Donald Trump, who promised (with his traditional subtlety) to make America “the crypto capital of the planet.” Regulatory agencies, either inspired or exhausted, disbanded their enforcement units. The Department of Justice and the SEC agreed: enforcement is so last season.

Meanwhile, like bored landowners seeking yet another duel, Congress threw new crypto legislation into the ring: SBR bills, state laws, and stablecoin frameworks. Bank of America’s Brian Moynihan, the very portrait of readiness, hinted the bank would launch its own stablecoin, should bankers finally get the legal nod. No word on its flavor—vanilla, mint, or existential dread.

By late April: Politico claimed, in hushed tones, that Senate Majority Leader John Thune told his fellow lawmakers they would (gasp) vote on a stablecoin bill before the Memorial Day holiday. The tension: palpable! Or as palpable as a Senate vote could ever be.

February witnessed Senator Bill Hagerty’s grand introduction of the GENIUS Act, an effort so bold it even had an acronym. This masterpiece was designed to let regulators—perhaps with trembling fingers—fold USDT and USDC tokens into the loving arms of the Federal Reserve.

The day may soon dawn where regulators, freed from chasing stablecoins, can devote themselves to more pressing matters, such as counting the pencils in their offices, or perhaps, assigning cryptic acronyms to future crypto bills. The dream lives on. 🚀

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2025-05-01 15:46