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Former SEC Official Reacts to PayPal’s Decision to Ditch Its Stablecoin

Sun, 02/12/2023 - 16:53
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Alex Dovbnya
An ex-SEC official says it was “blatantly obvious” for PayPal to ditch its stablecoin
Former SEC Official Reacts to PayPal’s Decision to Ditch Its Stablecoin
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PayPal has halted its work on its stablecoin due to partner Paxos being investigated by the New York Department of Financial Services.

The payment provider was expected to release the stablecoin in the near future but has now canceled its plans.

Former U.S. Securities and Exchange Commission official John Reed Stark stated that the regulatory scrutiny of crypto firms is why PayPal has made this decision.

He adds that any US financial company that interacts with public blockchains is viewed as too risky.

Stark's comments come after Kraken was accused of selling unregistered securities, leading to the company paying a $30m fine and removing its staking feature in the US.

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PayPal has had an increased interest in crypto in recent years, but regulatory actions against crypto firms have caused the company to pause its stablecoin development.

PayPal's CEO Dan Schulman has announced his retirement at the end of 2023.

Stark has been a staunch cryptocurrency critic. He recently attributed market manipulation to Bitcoin's recent resurgence. However, some suggested that macroeconomic trends were responsible for Bitcoin's momentum.

The former SEC official also recently tweeted that Bitcoin could be an unregistered security, referencing a Twitter thread about Bitcoin mining centralization.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at