Chairman of the House Financial Services Committee: Stablecoins Expected to Become the Backbone of 21st Century Payment Systems

Odaily News After PayPal announced the launch of the stablecoin PYUSD, Patrick McHenry, Chairman of the U.S. House Financial Services Committee, issued a statement saying, "This announcement is a clear signal that stablecoins, if issued under a clear regulatory framework, are poised to become the cornerstone of our 21st-century payment system. Clear regulations and strong consumer protections are crucial for stablecoins to fully unleash their potential. That's why comprehensive digital asset regulation provided by legislation is more important than ever, especially for stablecoins. The bipartisan Payment Stablecoin Transparency Act recognizes the important role that states play in regulating digital asset companies and builds upon the successful regulatory systems in states like New York. We are at a crossroads to keep the United States at the forefront of digital asset innovation, and both parties in Congress are making significant progress in legislation to ensure that the U.S. leads the future financial system. We must get this work done." Previously, the House Financial Services Committee passed the Clarity for Payment Stablecoins Act of 2023. This bill establishes regulatory pathways for approving and overseeing stablecoin issuers, while ensuring strong consumer protections by creating uniform federal minimum standards for payment stablecoins. As previously reported, PayPal announced the launch of the PayPal USD (PYUSD), a stablecoin used for transfers and payments. The stablecoin is issued by Paxos Trust Co. and backed by the U.S. dollar, short-term Treasury bonds, and cash equivalents. PYUSD will be gradually rolled out to PayPal customers in the United States.