Congresswoman Maxine Waters Criticizes PayPal's Entry into Dollar-Pegged Stablecoin Arena Without Federal Regulatory Approval On Wednesday,
Democratic Congresswoman Maxine Waters (D-CA) criticized PayPal's launch of its new dollar-backed
stablecoin, PYUSD, as she believed the company should
have waited for federal regulatory approval before proceeding.
"I am deeply concerned that PayPal has chosen to launch its stablecoin while there is still no Federal framework for regulation," she said in a written statement.
PayPal took a groundbreaking step on Monday by introducing its stablecoin named
PYUSD, which signifies the first instance
of a major global payment firm developing its stablecoin.
The stablecoin, PYUSD, will be managed
by Paxos Trust, a New York-based crypto financial services company,
and its value will be strongly supported by deposits in U.S. dollars, along with short-term Treasuries and similar cash assets.
Holders of PYUSD will have the convenience of converting it into U.S. dollars and
within PayPal's network, including
bitcoin (BTC), bitcoin cash (BCH), ether (ETH), and Litecoin (LTC).
Waters, the leading Democrat on the House Financial Services Committee,
highlighted that PayPal boasts 435 million global customers, surpassing all major banks' total online
account counts combined.
