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 expected to become the backbone of our 21st century payment system. Clear regulations and strong consumer protection are essential for stablecoins to realize their full potential. This is why it is more important than ever for Congress to pass legislation to provide comprehensive digital asset regulation, especially for stablecoins. The bipartisan Payment Stablecoin Transparency Act recognizes the important role that states play in regulating digital asset companies and builds on successful state systems such as New York. We are at a crossroads, and to keep the United States at the forefront of digital asset innovation, both parties in Congress are making significant progress in legislation to ensure that the United States leads the future financial system. We must get this job done."
Previously, the House Financial Services Committee passed the Clarity for Payment Stablecoins Act of 2023. The bill determines the regulatory path for approving and regulating stablecoin issuers, while ensuring strong protection for consumers by creating uniform federal minimum standards for payment stablecoins.