Benzinga - Rep. Maxine Waters (D-Calif.) on Wednesday expressed concerns about PayPal Holding Inc's (NASDAQ:PYPL) entry into the dollar-pegged stablecoin market, stating that the company should have waited for federal regulatory approval.
What Happened: In a written statement, Waters said, "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. "
Waters emphasized the need for enforcement of stablecoin operations given the size and reach of PayPal.
"PayPal, with 435 million customers globally, exceeds the number of online accounts at all of the megabanks combined. Given PayPal's size and reach, Federal oversight and enforcement of its stablecoin operations is essential in order to guarantee consumer protections and alleviate financial stability concerns," she noted.
PayPal unveiled its PYUSD stablecoin, issued on the Ethereum (CRYPTO: ETH) platform by Paxos, with the aim of competing with established stablecoins such as Tether (CRYPTO: USDT) and Circle (CRYPTO: USDC) in the $125 billion market.
Stablecoins are cryptocurrencies that aim to maintain a stable value by being pegged to the value of a national currency, such as the US dollar.
See More: A Stay At The Floating Palace From James Bond's ‘Octopussy’
Why It Matters: Earlier this week, the House Financial Services Committee, led by Republicans, advanced a stablecoin bill. Chairman Patrick McHenry (R-NC.) stated that PayPal’s entry into the stablecoin market signifies the need for lawmakers to finalize regulation.
However, Waters criticized the Republican bill, describing it as "toxic and problematic. ‘
She urged "McHenry and Committee Republicans to come back to the negotiation table to craft a bill that actually works."
Price Action: At the time of writing, apex crypto Bitcoin (CRYPTO: BTC) was trading at $29,568.83, down 2.50% in the last 24 hours, according to Benzinga Pro.
Photo Courtesy: Shutterstock.com
Read Next: Bitcoin, Ethereum, Dogecoin Mixed As SEC Plans To Appeal XRP Ruling: Analyst Says Solana Could Replicate Cardano’s 2019 Bear Market Comeback
Join Benzinga’s Future of Digital Assets in NYC on Nov. 14, 2023 to stay updated on trends like AI, regulations, SEC actions & institutional adoption in the crypto space. Secure early bird discounted tickets now!
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.