Democratic leader Maxine Waters expresses concern over PayPal's stablecoin

ChainCatcher News: U.S. House Democratic Leader Maxine Waters expressed her "deep concerns" over PayPal's move to launch a stablecoin this week without a federal regulatory framework.

Waters stated in a statement on Wednesday, "PayPal has 435 million customers worldwide, surpassing the total number of online accounts at all major banks. Given PayPal's size and reach, federal oversight and enforcement of its stablecoin operations are crucial to ensuring consumer protection and alleviating financial stability concerns."

It is reported that Waters previously served as the chair of the House Financial Services Committee, which is currently led by North Carolina Republican Congressman Patrick T. McHenry. At the end of last month, the committee proposed a regulatory framework for payment stablecoins, called the "Payment Stablecoin Transparency Act." McHenry stated that the bill would protect consumers through federal safeguards while promoting innovation in the U.S.

Waters noted that the House Financial Services Committee Democrats have been working on stablecoin regulation for the past 15 months to "create an environment that protects consumers and the economy in cases where companies like PayPal decide to launch their own stablecoins." However, she called the bill "problematic" and added that it would harm consumers.