Democratic Party leader Maxine Waters: "Deeply concerned" about PayPal stablecoins.

Odaily News - Maxine Waters, the Democratic leader of the United States House of Representatives, expressed concerns about PayPal's launch of a stablecoin without federal regulatory framework this week. In a statement on Wednesday, Waters said, "With over 435 million customers worldwide, PayPal has more online accounts than all major banks combined. Given its scale and reach, federal oversight and enforcement of its stablecoin business are crucial to ensuring consumer protection and mitigating financial stability concerns." Waters, who previously served as the chair of the House Financial Services Committee, which is currently led by Republican Representative Patrick T. McHenry of North Carolina, referred to a regulatory framework for payment stablecoins proposed by the committee last month, known as the "Payment Stablecoin Transparency Act." McHenry stated that the act aims to protect consumers through federal guardrails while fostering innovation in the United States. Waters emphasized that House Financial Services Committee Democrats have been dedicated to regulating stablecoins over the past 15 months and "creating an environment to protect consumers and the economy when companies like PayPal decide to launch their own stablecoins." However, she described the act as "toxic and problematic" and added that it could harm consumers. (The Block) In previous news, PayPal announced the launch of PayPal USD (PYUSD), a stablecoin designed for transfers and payments. The stablecoin is issued by Paxos Trust Co. and backed by the U.S. dollar, short-term government bonds, and cash equivalents.