US SEC Sends Paypal a Subpoena Requesting Documents

US SEC Sends Paypal a Subpoena Requesting Documents

StablecoinSEC

By Miles

02 Nov 2023 (8 months ago)

1 min read

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PayPal gets a request from the SEC after launching its digital coin, sparking debates among U.S. politicians.

PayPal has received a subpoena from the U.S. Securities and Exchange Commission (SEC). The exact reason is not clear, but the SEC wants documents from PayPal. PayPal said it is cooperating.

In August, PayPal introduced its own stablecoin, which is a type of digital money. This coin, tied to the dollar, is managed on the Ethereum platform by Paxos Trust Co.

Though some praised the new stablecoin, some politicians in Washington expressed concerns. Maxine Waters, a House Democrat, mentioned she was worried and said new types of money need strict rules.

Patrick McHenry, head of the House Financial Services Committee, sees potential in stablecoins, especially if they have clear rules. His committee approved a bill providing a guide on how to regulate stablecoin makers.

However, the bill caused strong disagreements, even leading to loud arguments between politicians in July.

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