PayPal CEO Calls for Clear Stablecoin Use Case as US Market Capitalization Nears $250 Billion

PayPal CEO Alex Chriss has highlighted the need for a compelling use case to drive the widespread adoption of stablecoins in the United States. Despite the growing market capitalization of stablecoins, which has recently approached $250 billion, representing about 7.5% of the entire crypto sector’s value, consumer usage remains slow. This is largely due to a lack of incentives for consumers to adopt stablecoins, according to Chriss.

Chriss noted that the primary use case for stablecoins among PayPal users has been cross-border money transfers. He emphasized that stablecoins offer a fast, secure, and inexpensive mode of currency for such transactions, which often incur high fees. However, broader adoption in daily financial transactions is still limited. Chriss expressed hope that regulatory developments, such as the GENIUS Act, could ease restrictions and make cryptocurrency more accessible to the public.

The GENIUS Act, which has recently cleared the Senate, awaits a critical vote in the House of Representatives. Alongside it, lawmakers are shaping a second major bill aimed at establishing a clearer market structure for digital assets. Senator Tim Scott, who leads the Senate Banking Committee, hopes to see this legislation passed by September, with a focus on clarifying regulatory oversight between the SEC and CFTC. Senator Cynthia Lummis expressed concern about potential delays, stating she’d be “extremely disappointed” if both bills fail to pass before 2026.

If approved, these legislative efforts could set clear rules for stablecoins and crypto assets, bringing innovation while enhancing user protection. However, the path to final passage remains uncertain as further revisions and debates may still lie ahead. In May, PayPal’s blockchain head Jose Fernandez da Ponte also discussed PYUSD adoption and upcoming regulatory challenges, highlighting the importance of getting legislation in place for the sector.

Meanwhile, the European Union is also preparing to open its doors to stablecoins issued outside the bloc, despite resistance from Europe’s central bank. The European Commission is preparing to release guidance that would treat foreign-issued stablecoins as equivalent to their European-branded counterparts. This move could dramatically boost the presence and utility of non-EU stablecoins across European markets, signaling a broader shift in global digital finance integration.