#Crypto coin paypal series

The SEC alleged that Kraken’s staking service was an illegal sale of securities and that its crypto-staking products broke the rules. PayPal’s apparent decision to put its stablecoin on hold is happening as the crypto sector is facing a number of obstacles in the wake of last year’s FTX collapse, as PYMNTS wrote recently, including “brute-force regulatory pressures in the U.S., increasingly disinterested retail investors,” and “a potentially unbanked future.”Īdd to all this the Securities and Exchange Commission’s (SEC) $30 million settlement with the U.S.-based crypto exchange Kraken around its staking product, something many observers consider to be the biggest recent development in the crypto sector. “Paxos continues to work constructively with the OCC.” “To clarify speculation: Paxos has not been asked to withdraw its application for a national trust bank charter from the OCC, nor has it been denied the charter,” the firm said. Office of the Comptroller of the Currency (OCC). Read more: German Antitrust Probe To Focus On PayPal Merchant FeesĪs PYMNTS reported, news of the investigation came two days after Paxos took to Twitter to address “speculation” around its relationship with the U.S. PYMNTS has reached out to PayPal for comment but has not yet received a reply.īloomberg notes that the pause coincided with the news that PayPal’s partner on the stablecoin project, Paxos Trust, was under investigation by the New York State Department of Financial Services (NYDFS). 10).Ī PayPal spokesperson told Bloomberg that the company was “exploring a stablecoin” and that if it moves forward, “we will, of course, work closely with relevant regulators.” The payments company intended to unveil a new stablecoin crypto currency in the next few weeks, Bloomberg News reported Friday (Feb.

#Crypto coin paypal series

PayPal is hitting the brakes on its announced stablecoin project amid heightened scrutiny around the cryptocurrency industry following a series of high-profile scandals.