Maxine Waters calls for stablecoin ‘guardrails’ after PayPal debut

Waters says consumers are “at greater risk of harm” at the hands of bad actors without legislation


House Democrat Maxine Waters | mark reinstein/Shutterstock modified by Blockworks


House Democrat Maxine Waters, D-Cali., is “deeply concerned” about PayPal’s new stablecoin. 

In a statement on Wednesday, Waters said that her concern stems from the lack of a federal “framework for regulation, oversight and enforcement of these assets.”

“I and Democrats on the Committee have been working diligently for 15 months on legislation to help to address this issue, and create an environment where consumers and the economy would be protected in the event a corporation like PayPal decided to launch its own stablecoin,” Waters said.

Waters previously pushed back against the stablecoin bill, saying that the “extreme…wing of the Republican party” forced the House Financial Services Committee to address “a trove of anti-ESG, anti-investor, and wholly anti-capitalist bills” in late July. 

Waters echoed that dissent on Wednesday, contending that there’s “no chance” that Republicans’ current version is signed into law. She urged Republicans and Chair Patrick McHenry R-N.C. to return to the negotiating table.

“Specifically, the Republican bill gives stablecoins like PayPal USD that are issued under state regimes a seal of approval, but blocks the Federal Reserve from overseeing or enforcing any Federal standards,” she continued.

On Tuesday, the Federal Reserve detailed its plans for expanded oversight of crypto-related activities at banks. These measures include requiring state member banks to obtain written approval from the Fed before using distributed ledgers or other technologies to “conduct payments activities as principal, including by issuing, holding or transacting in dollar tokens.”

Waters enforced the need for “Federal guardrails” on any “issuance of a new form of money,” including stablecoins.

The stablecoin draft bill currently making the rounds around Capitol Hill was released by Republicans earlier this year. In April, Waters said that the stablecoin draft would force Democrats to “start from scratch.”

PayPal announced its stablecoin, an Ethereum-based token issued by Paxos, on Monday. The stablecoin, called PayPal USD, can be transferred between external wallets compatible with PayPal. Customers will also be able to buy, send, convert and fund purchases “in the coming weeks.”

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.


Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research Report Templates.png


ZKPs enable efficient offchain transaction processing and validation, resulting in increased throughput and reduced fees. Solana's ZK Compression leverages ZKPs to minimize onchain storage costs, while Sui's zkLogin streamlines user onboarding by replacing complex key management with familiar OAuth credentials.


The crypto asset manager lowered its planned fee from 0.25% to 0.15%, undercutting its competitors


Plus, a look at planned ETH ETF fees and how they differ from their BTC counterparts


North Korea suspected in breach of Indian exchange’s multisig wallet


Plus, Sanctum’s CLOUD token has officially launched — but not without problems


It’s not yet clear whether Donald Trump is pumping bitcoin. But an unofficial memecoin is still seeing benefit.