Maxine Waters, the leader of the Democratic Party in the US House of Representatives, expressed concerns about PayPal's launch of stablecoins without a federal regulatory framework this week.In a statement on Wednesday, Waters said, "PayPal has 435 million customers worldwide, more than the total number of online accounts of all major banks. Given PayPal's scale and scope of influence, federal government oversight and enforcement of its stablecoin business is crucial to ensuring consumer protection and mitigating financial stability concerns."
Waters, who previously served as chair of the House Financial Services Committee, which is currently led by Republican Representative Patrick T. McHenry of North Carolina, said the committee proposed a regulatory framework for payment stablecoins last month called the "Payment Stablecoin Transparency Act." McHenry said the bill would protect consumers through federal safeguards while promoting innovation in the US.
Waters said that Democrats on the House Financial Services Committee have been working to regulate stablecoins for the past 15 months and "create an environment that protects consumers and the economy in the event that companies like PayPal decide to launch their own stablecoins." However, she called the bill "problematic" and added that it would harm consumers.
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