PayPal receives SEC subpoena over stablecoin

PayPal disclosed that it received a subpoena from the Securities and Exchange Commission’s division of enforcement on Wednesday.

The extent of the subpoena is unclear, though PayPal noted that the regulator is seeking documents, and it is actively cooperating with the subpoena.

“The subpoena requests the production of documents. We are cooperating with the SEC in connection with this request,” PayPal said in a form 10-Q.

PayPal launched its stablecoin back in August, marking the first foray into dollar-backed stablecoins by a traditional finance firm. 

The stablecoin is issued on Ethereum by Paxos Trust Co. A monthly reserve report on the stablecoin is also handled by Paxos,…

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