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As became known yesterday, payment giant PayPal is facing scrutiny from the SEC regarding its activities related to stablecoins. The SEC has issued a subpoena to PayPal, specifically concerning its newly launched PYUSD stablecoin, which is currently available in the United States, reported Reuters.
This move by the regulatory authority has sparked a heated debate between prominent figures in the crypto industry.
Renowned pro-XRP lawyer Fred Rispoli believes that PayPal's response to the SEC's subpoena will be a defining moment for the company. He suggests that while complying with the regulatory request might demonstrate weakness and cowardice, challenging the validity of the subpoena in court would require bravery and intelligence.
Rispoli emphasizes the importance of setting expectations with the SEC, indicating that future crypto-related battles should be fought without any constraints.
There would be an approximately 0% chance of succeeding against an SEC subpoena enforcement action. We’ll see how well Elon does with that.
— Marc Fagel (@Marc_Fagel) November 2, 2023
On the other side of the debate, SEC veteran Marc Fagel dismissed any possibility of success in challenging the SEC's enforcement action. Fagel points out a past incident involving Tesla CEO Elon Musk, stating that even the wealthiest individuals have succumbed to the SEC's pressure in the past.
Crypto v. SEC
The discussion online echoes these sentiments, with followers expressing frustration at perceived injustices and demanding transparency from regulatory agencies. Many are calling for a fair evaluation of the situation, questioning the SEC's actions and emphasizing the need for accountability in such high-stakes financial matters.
As the debate rages on, the outcome of PayPal's battle with the SEC remains uncertain, leaving the crypto community and investors eagerly awaiting further developments in this high-profile case.