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Democratic congresswoman Maxine Waters has expressed her concerns over PayPal’s launch of its dollar-pegged stablecoin, PYUSD. 
In a&nbsp;<a href="https://democrats-financialservices.house.gov/news/documentsingle.aspx?DocumentID=410725" target="_blank" rel="noopener noreferrer nofollow">written statement</a>&nbsp;on Aug. 9, Waters urged for comprehensible regulation. She opined that laws should precede every major crypto move. 
<blockquote class="wp-block-quote"> 
 “I am deeply concerned that PayPal has chosen to launch its own stablecoin while there is still no Federal framework for regulation &lt;…&gt; Given PayPal’s size and reach, Federal oversight and enforcement of its stablecoin operations is essential.” <cite>Maxine Waters, democratic congresswoman</cite> 
</blockquote> 
PayPal, a major player in the payments industry, <a href="https://crypto.news/paypal-ventures-into-stablecoins-with-launch-of-pyusd/" rel="noopener noreferrer nofollow">introduced</a> its PYUSD stablecoin on Aug. 7. The digital token, issued on the Ethereum blockchain by Paxos, is poised to compete with established stablecoins like Tether (<a href="https://crypto.news/price/tether/" rel="noopener noreferrer nofollow">USDT</a>) and Circle (<a href="https://crypto.news/price/usd-coin/" rel="noopener noreferrer nofollow">USDC</a>) within the $125-billion market. 
 You might also like: <a href="https://crypto.news/paypals-stablecoin-potential-impact-and-user-reactions/" rel="noopener noreferrer nofollow"> PayPal’s stablecoin: potential impact and user reactions </a> 
Stablecoins are cryptocurrencies designed to maintain a value pegged to a traditional sovereign currency, such as the US dollar, often backed by assets like US Treasuries. 
Waters, a prominent figure as the leading Democrat on the House Financial Service Committee, underlined the significance of Federal oversight given PayPal’s massive global user base of over 435 million customers. This number exceeds the combined online accounts of the largest banks worldwide. 
 You might also like: <a href="https://crypto.news/paypals-secret-strategy-to-smart-contact-security-revealed/" rel="noopener noreferrer nofollow"> PayPal’s secret strategy to smart contact security revealed </a> 
The House committee recently greenlit legislation to establish guidelines for US stablecoins. However, Waters criticized the Republican-sponsored bill for lacking federal oversight, mainly excluding the Federal Reserve from regulation. 
<blockquote class="wp-block-quote"> 
 “Moreover, the Republican bill undermines the Fed’s role as our central bank, making it harder to protect the economy against inflation or support maximum employment if stablecoins are broadly adopted.” <cite>Maxine Waters, democratic congresswoman</cite> 
</blockquote> 
In contrast, Rep. Patrick McHenry, the House Financial Services Committee chair, <a href="https://crypto.news/us-official-calls-for-stablecoin-law-amid-paypals-pyusd-launch/" rel="noopener noreferrer nofollow">expressed his support</a> for PayPal’s stablecoin. 
In his statement on Aug. 7, McHenry acknowledged the potential of stablecoins as a key component of the future payment system, provided they are issued under a clear regulatory framework. 
 Read more: <a href="https://crypto.news/paypals-stablecoin-has-wallet-freezing-and-wiping-functions/" rel="noopener noreferrer nofollow"> PayPal’s stablecoin has wallet freezing and wiping functions </a>

PayPal’s stablecoin meets resistance from Democrat Waters

crypto.news

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