PayPal Eyes 70-Country PYUSD Expansion With Rewards For Its Stablecoin, Despite CLARITY Act Limbo

May Zabaneh, PayPal’s head of crypto and senior vice president, told Fortune that the company is planning to to expand its PYUSD stablecoin to 70 countries by the end of the month.

• The expansion comes as the CLARITY Act remains stalled in the Senate due to disagreement over stablecoin rewards. 
• As per the last proposal, PayPal would not be able to offer rewards on stablecoin holdings since it is not the issuer of PYUSD.
• Regulatory uncertainty could force PayPal to revise its rewards model or international strategy. 

PayPal (PYPL) is reportedly looking to expand the reach of its PayPal USD (PYUSD) stablecoin to 70 countries by the end of the month and will allow users to earn rewards on their holdings despite the current uncertainty around the CLARITY Act.

May Zabaneh, the company’s head of crypto and senior vice president, told Fortune,  that not only would users be able to send and receive PYUSD, they would also be able to earn rewards on their stablecoin holdings. So far, only users in the U.S. and U.K. are  able to hold PYUSD, according to the company website, and are eligible to earn 4% yield annually. 

PayPal's PYUSD expansion and rewards like 4% annual yields for users could face complications due to the CLARITY Act's stalled progress in the Senate.

PayPal’s stock edged 0.2% higher in pre-market trade despite weakness in the broader market. Retail sentiment around the firm on Stocktwits trended in ‘bearish’ territory over the past day. Retail sentiment around PayPal USD remained in the ‘neutral’ zone.

Stablecoin Rewards Debate Stalls In Washington

The CLARITY Act passed the House in 2025 but remains blocked in the Senate Banking Committee as of March, primarily over debates on stablecoin rewards. The banking industry has opposed yields, citing that it could result in deposit flight, positioning them as competition to savings accounts. 

Crypto firms like Coinbase have contended that stablecoin rewards drive user growth. While President Donald Trump has accused the banking industry of holding the CLARITY “hostage” and others in the White House have also been critical of the banking industry’s lobby efforts, no clear deal has been made yet.

Policy Divide Over Crypto Rewards

PYUSD's plan for rewards on holdings for international holders challenges the GENIUS Act's yield restrictions for issuers, which says that a firm can’t offer rewards on stablecoins it has not issued itself. In PayPal’s case, the issuer is Paxos. Expansion to emerging markets adds international compliance layers, but U.S. rules could retroactively limit rewards or force restructuring. 

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