{"id":17224,"date":"2025-03-11T14:32:20","date_gmt":"2025-03-11T14:32:20","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=17224"},"modified":"2025-03-11T14:32:20","modified_gmt":"2025-03-11T14:32:20","slug":"paxos-ceo-urges-us-lawmakers-to-set-cross-border-stablecoin-regulation","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=17224","title":{"rendered":"Paxos CEO urges US lawmakers to set cross-border stablecoin regulation"},"content":{"rendered":"
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US lawmakers are set for a heated debate on stablecoin regulation, with key industry leaders expected to outline their vision for the future of digital asset oversight.<\/p>\n

Charles Cascarilla, co-founder and CEO of stablecoin issuer Paxos, is scheduled<\/a> to testify before the House Financial Services Committee, urging lawmakers to establish \u201ccross-jurisdictional reciprocity\u201d in stablecoin regulations.<\/p>\n

In his prepared testimony, Cascarilla flagged<\/a> concerns about the existing hurdles in the adoption of Paxos\u2019 Global dollar (USDG) stablecoin due to it being issued via a regulated affiliate in Singapore.<\/p>\n

\u201cWe fear that products like Paxos\u2019 Global dollar stablecoin, issued by a regulated affiliate in Singapore, will languish while departments and agencies make their determinations,\u201d the Paxos CEO wrote in his speech.<\/p>\n

The US must act to prevent regulatory stablecoin arbitrage<\/h2>\n

Cascarilla recommended US lawmakers strengthen the current \u201cinternational reciprocity language\u201d to include clearly defined and accelerated timelines for the US Treasury Department to designate overseas jurisdictions for stablecoin regulation.<\/p>\n

\u201cThis timeframe would force swift action and prevent bureaucratic delays while guaranteeing thorough scrutiny of foreign regulatory regimes,\u201d the executive said.<\/p>\n

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Source: House.gov<\/em><\/p>\n<\/figcaption><\/figure>\n

Cascarilla emphasized that potential delays in applying such action would be a major hurdle in the adoption and distribution of stablecoins like USDG in the US as well as cross-border operations.\u00a0<\/p>\n

\u201cReciprocity is not about lowering standards \u2014 it\u2019s about raising them globally,\u201d Cascarilla said, adding:<\/p>\n

\u201cBy establishing a framework to recognize jurisdictions with comparable regulatory regimes \u2014 covering reserve requirements, AML measures and cybersecurity protocols \u2014 the United States can prevent regulatory arbitrage, where issuers exploit lax oversight abroad.\u201d<\/p><\/blockquote>\n

Paxos stablecoins were deemed non-compliant in the EU<\/h2>\n

Cascarilla\u2019s remarks come amid some Paxos-issued stablecoins facing compliant issues in the European Union following the enforcement of Europe\u2019s crypto regulation framework, the Markets in Crypto-Assets Regulation (MiCA<\/a>).<\/p>\n

Since the MiCA framework went into full force in December 2024, multiple crypto asset service providers in the EU \u2014 including Crypto.com and Coinbase \u2014 have announced delistings of Paxos stablecoins<\/a> like Pax dollar (PAX) and Pax gold (PAXG).<\/p>\n

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While Paxos\u2019 Cascarilla is now calling the US for urgent action in forcing a global framework for stablecoin issuers that are regulated outside of the US, some industry CEOs have urged all stablecoin firms to get regulated domestically instead.<\/p>\n

In February, Circle co-founder Jeremy Allaire argued that all dollar-based stablecoin issuers should register in the US<\/a>, citing consumer protection and fair competition in the crypto market. He stated:<\/p>\n

\u201cWhether you are an offshore company or based in Hong Kong, if you want to offer your US dollar stablecoin in the US, you should register in the US just like we have to go register everywhere else.\u201d<\/p><\/blockquote>\n

Issued and regulated in the US, Circle\u2019s USDC (USDC<\/a>) stablecoin was officially approved as the first MiCA-compliant stablecoin<\/a> in 2024.<\/p>\n

Magazine: <\/strong><\/em>How crypto laws are changing across the world in 2025<\/strong><\/em><\/a><\/p>\n