As it is known, PayPal announced on Monday that it will launch its own cryptocurrency PYUSD.
However, the move came under harsh criticism from Representative Maxine Waters, Chair of the House Financial Services Committee.
Waters said in a statement that he was “deeply concerned” by PayPal's decision to issue its own stablecoin without a clear Federal regulatory framework. Waters argued that PayPal's stablecoin could pose risks to consumer protection and financial stability, given its huge customer base and global reach.
Waters claimed that PayPal's stablecoin is not subject to adequate oversight and enforcement by the Fed or other Federal agencies. He also criticized a Republican bill that would allow state-approved entities to issue stablecoins without Federal oversight.
Waters said the bill would weaken the Fed's central bank role and make it harder to protect the economy from inflation or unemployment if stablecoins were widely adopted. He called for the creation of a comprehensive Federal framework for the regulation and oversight of stablecoins.
In addition, the Democratic senator argued that the stablecoin law introduced by the Republicans is unlikely to become law.
*Not investment advice.
