Rep. Maxine Waters criticizes PayPal’s stablecoin, demands regulation on par with financial institutions News ▸ US ▸ Regulation
Rep. Maxine Waters criticizes PayPal’s stablecoin, demands regulation on par with financial institutions
Waters said that a Republican bill favoring such assets has 'no chance' of success.
1 min read
Updated: Aug. 9, 2023 at 9:15 pm UTC
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Democratic U.S. Congresswoman and House Financial Services Committee Ranking Member Maxine Waters criticized PayPal’s stablecoin on Aug. 9.
Waters said in a statement:
“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.”
She added that Federal oversight and enforcement against PayPal’s stablecoin is necessary to protect users and guard against financial stability concerns. Waters added that consumers are at risk if there is no legislation to protect them, emphasizing that stablecoins “represent the issuance of a new form of money.”
Waters’ demand for regulation was in part based on PayPal’s massive reach. She noted that PayPal has 435 million customers globally and that its customer base outnumbers all online accounts held by customers of “megabanks.”
However, PayPal has stated that its stablecoin will only be available to users in the U.S., which means the stablecoin may be used by a smaller group in practice.
Waters criticizes Republican bill
Waters noted that, for 15 months, she and other Democrats on the House Financial Services Committee have been preparing legislation to protect users.
She criticized Republican committee members for advancing a separate bill that essentially endorses stablecoins, including PayPal’s. In Waters’ view, this bill restricts the Federal Reserve from exercising its enforcement and oversight duties, thereby “undermining its role” as the central bank. Waters also warned that the broader adoption of stablecoins under the Republican bill could impact inflation and employment.
Waters’ statements concern a bill House Financial Services Committee Chair Patrick McHenry promoted on Aug. 7, shortly after PayPal’s own announcement.
Despite her concerns about the Republican bill, Waters said asserted that the bill has “no chance” of entering law and requested further bipartisan negotiations.
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Mike Dalton
Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada's West Coast.
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PayPal
PayPal is an American multinational financial technology firm that operates an online payment system in most countries that permits online money transfers and serves as an electronic replacement for conventional paper methods like checks and money orders.
Maxine Waters is an American politician who has served as the US Representative for California’s 43rd congressional district since 1991.
Patrick McHenry is an American politician who has been serving as the U.S.