PayPal (PYPL) received a subpoena from the U.S. SEC requesting documentation about its USD stablecoin on Wednesday, the global payments giant said in a filing.
Paypal received a subpoena from the Securities and exchange commission. The company said, quote on November 1st 2023 we received a subpoena from the US EC division of enforcement relating to Paypal, UD Stablecoin. The subpoena requests the production of documents. We are cooperating with the SEC in connection with this request and quote. Paypal stablecoin was the first from a major financial services firm, Lawrence. What are your thoughts? I don't think it looks bad. It's, this isn't, this isn't the same as some other subpoenas generally in the sense that or when we hear about a subpoena it, look, the sec will subpoena people all the time fishing expeditions just to see if there's anything they can go with. Uh they, they've been wary with Paxos which is Paypal's partner in uh the the in the uh in the stable coin uh particularly after what happened with Paxos, other partner Binance, which again, when Binance kind of went off the rails there and issued its own version of B US D, which wasn't backed by uh the, the same way that the, the version they did with Paxos. So I think what, what we're seeing here is sort of the sec just trying to see what they could pick up and, and come up with maybe a charge of securities dealing, things like that. If they can find some evidence, it doesn't necessarily mean that there is anything wrong far from it. Uh, it's just, again, it's just like, all right, give us some documents. Let's see. This, let's, let's just make sure this is really as good as you say it is. Um So I, I don't think it's necessarily a bad look as you, as you characterize it. I, I think it's just more of, well, let's just see what we can dig up. They do this all the time. Um And they do it a lot in crypto. I, I wouldn't necessarily put too much weight into it. Let's see what they ultimately say. That's far more important. Yeah, Lawrence, I uh I completely agree with you. I think, you know, paypal is a little bit differentiated than some of the crypto native companies. We've seen say the SEC is looking into us, maybe they've subpoenaed some documents and then shortly after we see the SEC um go after firms that happened with Coinbase, I think paypal and a little bit of a different ship here given their history and relationships with regulators, but some stable coin legislation, I think could help if, if we ever see that come to fruition, you would hope but is kind of busy right now. And when we talk about the unbanked that might have to do with the speaker who allegedly doesn't have his own bank account.