US Representative Patrick McHenry: Stablecoins ‘Hold Promise as a Pillar of Our 21st-Century Payments System’

Representative Patrick McHenry, chairman of the House Financial Services Committee, weighed in positively on the launch of PYUSD, a dollar-pegged stablecoin issued by Paypal, a U.S.-based payments company. McHenry stated that if properly regulated, stablecoins “hold promise as a pillar of our 21st-century payments system,” calling on Congress to put clear rules on the sector by enacting stablecoin-specific regulation.

Representative McHenry States Stablecoins Might Become ‘Pillar’ of Current Payment Systems

U.S. Representative Patrick McHenry issued a statement on Monday, weighing in on the significance of the recent U.S. dollar-pegged stablecoin launched by payments behemoth Paypal.

McHenry, chairman of the House Financial Services Committee, viewed this development positively, stating that Paypal’s announcement was “a clear signal that stablecoins—if issued under a clear regulatory framework—hold promise as a pillar of our 21st-century payments system.”

Paypal announced the launch of an in-house managed stablecoin on Monday, dubbed “Paypal USD” (PYUSD). Paypal CEO Dan Schulman said the company’s vision was to integrate this stablecoin into its overall payments infrastructure.

McHenry also reinforced the need to bring clarity to the sector to grow the stablecoin industry in the country. He stated:

Clear regulations and robust consumer protections are essential to enabling stablecoins to achieve their full potential. That’s why it’s more important than ever that Congress enact legislation to provide comprehensive digital asset regulation, especially for stablecoins.

Stablecoin Regulation Advances

McHenry has been one of the supporters of bringing cryptocurrency and stablecoin-specific regulations to the U.S. In July, the House Financial Services Committee passed four cryptocurrency bills. The Clarity for Stablecoins Act, a stablecoin-specific bill, was among these, having been approved with bipartisan support.

McHenry also detailed that the Clarity for Stablecoins Act was built on top of the already existent crypto regimes that some states like New York have built, offering strong regulation to cryptocurrency companies.

Regulating digital assets and stablecoins is of significant importance for the U.S., McHenry detailed, declaring that the future of the leadership of the country in the digital asset industry was linked to the regulations. He concluded:

We are currently at a crossroads to keep America at the forefront of digital asset innovation. Congress is making significant, bipartisan progress on legislation to ensure the U.S. leads the financial system of the future. We must finish the job.

What do you think about Representative Patrick McHenry’s position on Paypal’s stablecoin launch and the usage of stablecoins as payment tools? Tell us in the comments section below.