The Securities and Exchange Commission (SEC) has launched legal actions against payment services giant PayPal. In question, its stablecoin PYUSD which, one imagines, would not comply with American standards on securities. News which did not weigh down the company’s share price, quite the contrary.
PayPal shares gain 7% in a particular crypto context
Payment services juggernaut PayPal has seen a remarkable increase in its stock market valuation. The latter grew by nearly $4 billion, thanks to its commitment to becoming an organization “lightened”.
The increase in the market value of PayPal shares, which reached a unit price of $55.12 this Thursday, November 2, is completely paradoxical. It comes even as the company has just joined the ranks of crypto-related companies prosecuted by the SEC.
The company revealed that it received a subpoena from the financial regulator regarding its stablecoin PYUSD. As a reminder, the crypto was launched on the market last August, in collaboration with the crypto firm Paxos.
“On November 1, we received a subpoena from the United States SEC Enforcement Division regarding the PayPal USD stablecoin. The subpoena requests the production of documents so we are cooperating with the SEC in connection with this request,” the company communicated.
A development that does not scare investors!
It must be said that the subpoena of PayPal by the SEC underlines its determination to closely monitor the crypto sector. Analysts believe the company’s cooperative approach should help alleviate concerns among the crypto community. This, while remaining a pioneer in financial technology linked to this ecosystem.
This is basically the meaning of the communication from Alex Chriss, the new CEO of PayPal. The latter emphasized the need for the company to reduce costs and align its resources with the most profitable growth priorities.
It seems that this position had a favorable response from investors, generating a certain optimism about the future performance of the company. The company’s positive forecasts are also based on the financial resilience of consumers who, despite economic uncertainty, maintain their consumption habits.
Note that JP Morgan analyst Tien-tsin Huang congratulated Alex Chriss for his effective communication. In particular on the company’s challenges and its solid strategy to improve its growth and profitability. It remains to be seen whether this will be enough to counter the crypto legal wave that is hitting PayPal. To be continued…
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