Congresswoman Maxine Waters Says She Is “Deeply Concerned” About PayPal’s New Stablecoin
PayPal launched its new dollar-backed stablecoin PYUSD on Monday, the first time a global payments company has issued its own stablecoin.
Waters, the top Democrat on the House Financial Services Committee, noted that PayPal has 435 million customers worldwide, more than the number of online accounts for all of the largest banks combined.
Given PayPal’s size and reach, government oversight and enforcement of its stablecoin operations is critical to ensure consumer protection and address financial stability concerns,” Waters wrote.
The House Committee recently passed legislation aimed at establishing guard rails for US stablecoins, with several of Waters’ fellow Democrats defying their opposition and voting with Republicans.
Waters criticized the Republican-backed bill for allowing stablecoins like PYUSD to be issued under state regimes but preventing the Federal Reserve from overseeing them.
“Furthermore, the Republican bill undermines the Fed’s role as our central bank by making it more difficult to protect the economy from inflation or support maximum employment if stablecoins are widely adopted,” she added.
In contrast, Rep. Patrick McHenry (R-North Carolina), chairman of the House Financial Services Committee, expressed support for PayPal’s new stablecoin in a statement released Monday.
“This announcement is a clear signal that stablecoins – if issued under a clear regulatory framework – have promise as a pillar of our 21st century payments system,” McHenry wrote.
UPDATE (9 Aug 2023, 17:12 UTC): Adds information on the status of the US stablecoin law added.
