PayPal CEO Warns: US Stablecoin Adoption Faces Major Roadblocks—Here’s Why

The road to mainstream stablecoin adoption in the US just hit a speed bump—and PayPal's CEO isn't sugarcoating it.

Regulatory whiplash strikes again

While the rest of the financial world races toward crypto integration, American lawmakers are still stuck debating basic definitions. The irony? This comes as offshore stablecoin volumes smash records weekly.

Institutional FOMO meets bureaucratic paralysis

Banks and payment giants are itching to deploy stablecoin solutions that could slice settlement times from days to seconds. Too bad Washington's moving at blockchain speeds—the 1999 version.

The closer we get to real adoption, the louder the regulatory goalposts seem to screech across the field. Maybe they'll figure it out by the time Bitcoin hits its next ATH—or when the dollar's digital counterparty risk becomes too obvious to ignore.

PayPal uses stablecoins mainly for sending money abroad

Chriss believes stablecoins are very practical in dealing with the delays, high transaction fees, and a lack of transparency with traditional methods when sending money across borders. 

The company sees cross-border payments as a gateway for mainstream users in underserved regions, where people often rely on outdated financial systems, and wants everyone to experience the benefits of stablecoins firsthand.

However, Chriss says adoption rates in the US are low because consumers haven’t yet found a compelling reason to change their habits. They don’t see how stablecoins can improve their daily financial lives and are comfortable using credit cards, bank transfers, and mobile apps.

Chrics explained that PayPal builds tools and programs that make stablecoins easier and safer. The company is also launching its own stablecoin early and investing in infrastructure, education, and partnerships that make stablecoins more useful in the real world.

New US laws will convince more people to use stablecoins

The GENIUS Act recently passed the Senate and is now waiting for a vote in the House of Representatives. It could give businesses and consumers more confidence to participate in the digital economy.

Meanwhile, the US lawmakers are working on a second major piece of legislation focusing on the broader crypto market.

Senate Banking Committee lead, Senator Tim Scott, said he wants Congress to pass a digital asset market structure bill before the end of September. The bill will determine whether the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC) should oversee different types of digital assets, including stablecoins, tokens, and cryptocurrencies.

Senator Cynthia Lummis also said she WOULD feel “extremely disappointed” if the GENIUS Act and the digital asset market structure bill failed to pass before 2026. 

More companies will confidently join the industry, and there will be opportunities for innovation once Congress passes the bill.

The new protections and guidelines for how stablecoins and other digital assets should work will make users feel more secure and allow companies to invest in new technology and offer digital money services to more people.

Many lawmakers and industry leaders strongly support the bill, but no one knows exactly when Congress will take the final step to pass it.

So far, the bill has progressed; it passed in the Senate and gained attention in public debates, but it still needs to be approved by the House of Representatives. Even after that, lawmakers might suggest more changes or debate parts of the bill before it becomes a final law.

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