The Democrat Congresswoman Maxine Waters expressed her woes about PayPal creating its own stablecoin and says she is “deeply concerned.”
In a press release on 9 August, Waters said there are no clear rules from the government to supervise digital currencies.
Maxine expressed worry about PayPal saying, “I am deeply concerned that PayPal has chosen to launch its own stablecoin while there is still no Federal framework for regulation, oversight, and enforcement of these assets.”
“PayPal, with 435 million customers globally, exceeds the number of online accounts at all of the megabanks combined,” Maxine said in the release.
She added, “Given PayPal’s size and reach, Federal oversight and enforcement of its stablecoin operations is essential in order to guarantee consumer protections and alleviate financial stability concerns.”
On Monday, PayPal launched a U.S. dollar-pegged stablecoin called PayPal USD (PYUSD) marking the first instance of a global payments company creating its own stablecoin.
Congresswoman Waters criticized the Republican-sponsored bill because it allows for the approval of stablecoins like PYUSD, which are issued by private entities, but it doesn’t allow the Federal Reserve to regulate or oversee them.
She said, “As I said during last month’s markup, the Republican bill has no chance of actually being signed into law, and I urge Chair McHenry and Committee Republicans to come back to the negotiation table to craft a bill that actually works.”
The House committee has passed a bill that aims to establish rules for U.S. stablecoins, despite Congresswoman Maxine Waters’ objections. Some Democrats joined Republicans in supporting the bill, which can now proceed to a vote on the House floor.
The chair of the House Financial Services Committee, Patrick McHenry, conveyed his support for the launch of PYUSD stablecoin. “This announcement is a clear signal that stablecoins — if issued under a clear regulatory framework — hold promise as a pillar of our 21st-century payments system,” McHenry said in a Monday (Aug. 7) press release.
Also Read: PayPal’s Stablecoin Launch Sparks McHenry’s Call for Laws
