Paxos CEO is calling for the United States to implement clear cross-border stablecoin Rules. He argues that well-defined regulations will enhance global crypto adoption and ensure financial stability. As stablecoins gain traction, will the US take action to set a regulatory framework?
Cascarilla is asking for “cross-jurisdictional reciprocity” in stablecoin rules since uneven worldwide policies generate obstacles to adoption. The Paxos Global Dollar (USDG), a stablecoin generated via a controlled affiliate in Singapore, is one of his main worries. Extended regulatory uncertainty worries him since it might restrict its expansion and use both in the US and elsewhere.
In his prepared remarks, Cascarilla exhorts legislators to create explicit deadlines for the US Treasury to assess overseas stablecoin regimes,therebye strengthening international regulatory cooperation. HeHe contends that a quick response is required to avoid bureaucratic delays and guarantee the worldwide alignment of regulatory standards.
“Reciprocity is about raising standards worldwide,, not about lowering them,” Cascarilla said. Establishing a framework to identify nations with similar regulatory policies—such as reserve requirements, anti-money laundering (AML) rules, and cybersecurity guidelines—would help stop regulatory arbitrage, hThis phenomenonys. This happens when businesses operate in stronger regulatory regimes yet take advantage of less control in some areas.
The urgency of this campaign arises from Paxos’s European Union regulatory difficulties. Compliance issues have caused numerous crypto sites, including Crypto.com and Coinbase, to remove Paxos-issued stablecoins,, including Pax Dollar (PAX) and Pax Gold (PAXG), following the implementation of the Markets in Crypto-Assets (MiCA) framework.
The attraction of Cascarilla for transparent US stablecoin rules conflicts with views of other business executives. Some, including Jeremy Allaire, a co-founder of Circle, contend that all stablecoin issuers handling US dollars should register locally instead of pursuing worldwide regulatory alignment. Allaire insists that regardless of a company’s location, if it wants to operate in the US, it should follow US financial rules, the same as American businesses have to follow rules outside.
Stablecoins are becoming more and more important in digital banking; hence, the upcoming arguments among US politicians will be crucial in deciding how these digital assets are controlled. Leaders in the sector, like Cascarilla, are advocating a worldwide coordinated approach to prevent regulatory discrepancies that can stifle uptake and innovation.
