SEC Launches an Investigation into PayPal's Stablecoin
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The US Securities and Exchange Commission (SEC) has sent a subpoena to payments company PayPal related to its stablecoin PYUSD.

The company became in August the first of the financial market giants to launch a "stablecoin." The issuer of the dollar-linked asset was the infrastructure company Paxos.

PayPal's decision to issue its own stablecoin has provoked mixed reactions from members of the community.

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While some believed the PYUSD contributes to the mass adoption of digital assets, others pointed out the risks of centralization.

JPMorgan analyst Nikolaos Panigirtzoglou said that the currency could benefit Ethereum by increasing the total value of funds locked in the network.

Bank of America experts believe that the PYUSD adoption will be negligible due to competition from central bank digital currencies and common stablecoins.

Despite those views, PayPal's launch of the stablecoin has raised concerns in the US Congress due to the lack of a regulatory framework for such assets.

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