McHenry Highlights New PayPal Stablecoin, Legislative Progress
In response to PayPal’s announcement this morning of a new payment stablecoin, HFSC Chairman McHenry today championed the new product, emphasizing that there has been bipartisan progress toward legislative action on his bill and touting strong state regulatory regimes such as New York’s. This is the venue PayPal has selected in concert with working with Paxos Trust, also New York State licensed but a firm sanctioned this year for prior stablecoin activities.
IMF: Fed Should Focus on Corporate-Bond Risk
A new study from the IMF on corporate bond shocks and commercial bank lending urges the Fed to limit its market maker of last resort function and focus future policy interventions on mitigating corporate-bond dealer vulnerabilities and increasing investment-fund resilience. It bases these recommendations on findings that corporate bond market shocks can generate significant contagion to the commercial banking sector that reduces bank lending and increases prices and that commercial banks cannot be expected to shore up corporate bond markets.