The UK government published draft legislation that would bring market players including crypto exchanges and stablecoin issuers under formal regulation, while also covering market abuse, admissions and disclosure regimes.

The U.S. Securities and Exchange Commission has ended its investigation into PayPal’s dollar-backed stablecoin, PayPal USD (PYUSD), the payments company disclosed in a regulatory filing.

Libre, a platform focused on real-world asset (RWA) tokenization, plans to bring $500 million worth of Telegram corporate bonds on-chain through The Open Network (TON), a blockchain tied to the messaging app used by over a billion people monthly.

Top stories in the Crypto Roundup today:

• UK Unveils Draft Crypto Rules to Regulate Exchanges and Stablecoins
• SEC Drops PayPal Stablecoin Probe, Clearing Way for PYUSD Expansion
• Libre to Tokenize $500M in Telegram Bonds on TON in Real-World Asset Expansion

UK Unveils Draft Crypto Rules to Regulate Exchanges and Stablecoins

The UK government published draft legislation that would bring market players including crypto exchanges and stablecoin issuers under formal regulation, while also covering market abuse, admissions and disclosure regimes.

These changes build on the Financial Services and Markets Act, passed in 2023, which gave the Treasury new authority to craft crypto-specific rules. The European Union’s Markets in Crypto Assets (MiCA) regulation came into force in 2024, while the U.S., under the Trump administration, has recently softened its stance by dropping lawsuits against several crypto firms.

Speaking at the Innovate Finance Global Summit, Finance Minister Rachel Reeves said the rules aim to bolster the UK’s economic competitiveness, saying the legislation is meant to make “the U.K. a great place for digital asset companies to invest and innovate,” Reeves said, adding that the country will collaborate with the U.S. on digital asset development.

The Treasury is accepting technical feedback until May 25. Finalized rules covering market abuse, asset admission, and disclosures are expected later this year.

SEC Drops PayPal Stablecoin Probe, Clearing Way for PYUSD Expansion

The U.S. Securities and Exchange Commission has ended its investigation into PayPal’s dollar-backed stablecoin, PayPal USD (PYUSD), the payments company disclosed in a regulatory filing.

The SEC first issued a subpoena in November 2023 through its Division of Enforcement, requesting documents related to PYUSD. At the time, PayPal said it was cooperating with the agency, but according to its latest filing it was informed in February the agency would not pursue any enforcement action, effectively ending the inquiry.

Launched in 2023, PYUSD is issued by Paxos and pegged 1:1 to the U.S. dollar. It is backed by short-term U.S. Treasuries and cash equivalents, and is intended to be fully redeemable. Still, adoption has lagged as PYUSD’s market cap sits around $880 million—less than 1% of Tether’s $148 billion—and far behind Circle’s USDC.

This year has seen a modest rebound. Circulating supply of PYUSD is up 75% since January, though it remains below its August 2024 peak of over $1 billion.

Libre to Tokenize $500M in Telegram Bonds on TON in Real-World Asset Expansion

Libre, a platform focused on real-world asset (RWA) tokenization, plans to bring $500 million worth of Telegram corporate bonds on-chain through The Open Network (TON), a blockchain tied to the messaging app used by over a billion people monthly.

The move introduces institutional access to Telegram's fixed-income securities via a new vehicle called the Telegram Bond Fund (TBF). Accredited investors will be able to buy tokenized slices of the $500 million from Telegram's $2.4 billion in outstanding debt, and use them as collateral within TON’s decentralized finance protocols for borrowing, lending and earning yield.

Libre operates across multiple chains—including NEAR, Solana and Ethereum scaling solutions—and plans to expand its existing tokenized funds to TON as well. The company also introduced “Gateway,” a tool allowing fiat and stablecoin investments through TON-native wallets.

"The launch of the Telegram Bond Fund marks a major step forward in bringing regulated real-world assets to TON’s ecosystem," said Max Crown, TON Foundation CEO and co-founder of MoonPay.

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