PayPal’s Stablecoin Draws Criticism from Rep. Maxine Waters: Regulation Needed

• Rep. Maxine Waters criticized PayPal’s stablecoin, demanding financial institution-level regulation of the asset.
• A jury trial in SEC v. Ripple Labs is set for Q2 2024 and Coinbase’s Ethereum layer-2 chain Base is now available to the public.
• The Federal Reserve will require state banks to get written ’non-objection‘ from central bank before engaging with stablecoins while Bitstamp will halt U.S trading of seven tokens identified as securities by SEC in Coinbase and Binance cases.

Rep. Maxine Waters Demands Regulation on PayPal’s Stablecoin

Democratic U.S. Congresswoman and House Financial Services Committee Ranking Member Maxine Waters criticized PayPal’s stablecoin on Aug. 9 . Waters said in a statement: “I 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.“ She added that Federal oversight and enforcement against PayPal’s stablecoin is necessary to protect users and guard against financial stability concerns, emphasizing that consumer protection legislation must be passed to safeguard users from such risks

Jury Trial Set for SEC v Ripple Labs

A jury trial in the Securities Exchange Commission (SEC) versus Ripple Labs lawsuit has been set for Q2 2024 following a ruling by U.S District Judge Analisa Torres yesterday, August 8th . The lawsuit involves allegations that XRP was sold as an unregistered security by Ripple Lab executives over a period of 7 years, resulting in hundreds of millions of dollars being made illegally through sales activities associated with XRP tokens. This case could have significant implications on how cryptocurrencies are classified under US law moving forward if it succeeds in establishing XRP as a security token rather than a cryptocurrency or digital asset..

Coinbase’s Ethereum Layer-2 Chain Now Live

Coinbase’s Ethereum layer-2 chain Base is live to the public after launching yesterday , August 8th . This new platform allows developers to build applications on top of Ethereum without having to worry about transaction costs and scalability issues due to the use of a sidechain which helps reduce network congestion on the main chain while also providing faster transactions speeds when compared with traditional transactions occurring directly on Ethereum networks alone..

Federal Reserve Requires Banks To Get Written Non-Objection From Central Bank Before Engaging With Stablecoins

The Federal Reserve will require state banks to get written ‘non-objection’ from central bank before engaging with stablecoins according to reports from Bloomberg this week . This move follows recent criticism about lack of regulatory framework around such assets which could lead to serious financial instability if left unchecked due to their decentralized nature..

Bitstamp Halts U.S Trading Of Seven Tokens Identified As Securities By SEC In Coinbase And Binance Cases

Bitstamp announced this week that it would halt all U S trading activities involving seven tokens identified as securities by the Security Exchange Commission (SEC) during Coinbase and Binance investigations into possible violations associated with those tokens . These include NFTX, TONPADEX, COREZOSSEUMKVAMBXNFTXFLEXIDEXMCASHNETWORKSTELLARCLASSICETHERLEUMKVAMBXNFTXFLEXIDEXMCASHNETWORKSTELLARCLASSICETHERLEUMKVAMBXNFTXFLEXIDEXMCASHNETWORKSTELLARCLASSICETHERIUMTRUEUSDUSDTUSDC