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US House Financial Services Committee leadership takes opposing sides on the PayPal stablecoin

Published 08/09/2023, 03:10 PM
Updated 08/09/2023, 04:40 PM
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PayPal’s launch of a U.S. dollar-pegged stablecoin has prompted questions from Democratic members of the House Financial Services Committee, while Republican leadership said the coin showed the potential of regulatory clarity.

In an Aug. 9 statement, committee ranking member Maxine Waters (NYSE:WAT) said she was “deeply concerned” about the PayPal (NASDAQ:PYPL) USD (PYUSD) stablecoin without a regulatory framework in place to ensure oversight and protection for investors. PayPal announced the stablecoin’s launch on Aug. 7, saying its PYUSD would be issued by Paxos Trust and “fully backed by U.S. dollar deposits, short-term U.S. treasuries and similar cash equivalents.”

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