PayPal Holdings has received a subpoena from the Securities and Exchange Commission seeking documents tied to the PayPal USD stablecoin.
The San Jose, Calif., tech company disclosed in a regulatory filing that it is cooperating with the SEC’s request.
The PayPal USD stablecoin was launched in August by a third-party issuer that PayPal partners with commercially. The stablecoin began being offered to Venmo customers a month later.
“The regulatory treatment of stablecoins is evolving and has drawn significant attention from legislative and regulatory bodies around the world, including the SEC,” the filing notes.
“There are uncertainties on how ongoing changes to federal, state and international laws and regulations would apply to stablecoins in practice,” the filing adds. “We and the PYUSD Issuer may face substantial costs to operationalize and comply with any additional or changed requirement.”