PayPal's stablecoin launch is 'deeply' concerning, says Maxine Waters
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PayPal's (NASDAQ:PYPL) decision to launch its own stablecoin drew a harsh rebuke from Congresswoman Maxine Waters (D-CA) on Wednesday, amid a lack of U.S. regulation for such cryptocurrency tokens. 
âI 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," the top Democrat on the House Financial Services Committee said in a statement. 
On Monday, payments giant PayPal (PYPL) rolled out its new dollar-pegged stablecoin, PayPal USD (PY-USD), at a time when such tokens have taken little share in consumer payments. They're mostly used by traders to facilitate trades on crypto exchanges, and also serve as the underlying asset for numerous crypto loans. 
Waters warned that PayPal (PYPL) has more customers globally than all the megabanks combined at 435M, as stablecoin payments are a practice that has yet to gain ground. That means it's vital to establish "clear and strong consumer protections at the federal level," she said.
âGiven PayPalâs size and reach, Federal oversight and enforcement of its stablecoin operations is essential in order to guarantee consumer protections and alleviate financial stability concerns,â Waters added.
PYPL slipped 1.1% in mid-afternoon trading.
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