Paxos Letter to Harris and Trump Highlights Urgent Need for Stablecoin Regulation

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Hongji Feng

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Hongji Feng

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Hongji is a crypto and tech reporter. He graduated from Northwestern University's Medill School of Journalism with a Bachelor's and a Master's. He has previously interned at HTX (Huobi Global),...

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October 29, 2024

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In an open letter addressed to Vice President Kamala Harris and former President Donald Trump on Tuesday, Paxos CEO Charles Cascarilla called for decisive U.S. action on digital asset regulation.

He emphasized that establishing a clear framework for stablecoins and blockchain technology is critical to maintaining the nation’s financial leadership amid growing international competition.

Cascarilla’s letter underscored stablecoins and blockchain technology as essential tools for modernizing the U.S. financial system.

He cautioned that while various industries have embraced new technologies, the financial sector remains hindered by outdated infrastructure, placing the U.S. at risk of ceding its financial leadership to international players.

The Role of Stablecoins in Modernizing U.S. Financial Infrastructure

Cascarilla highlighted how stablecoins and digital assets could enhance U.S. financial capabilities and safeguard the dollar’s influence globally.

“Stablecoins or digital dollars—U.S. dollars digitized via blockchain technology—could improve the payment system, increasing accessibility in the global economy while supporting the U.S. dollar’s stability,” Cascarilla stated.

He added that digitized dollars could not only streamline money movement but also expand participation in the global economy, strengthening the dollar’s prominence.

U.S. Falling Behind in Global Digital Asset Regulation

As Cascarilla outlined the benefits of stablecoins for U.S. infrastructure, he also raised concerns about lagging regulatory action.

He noted that jurisdictions like Singapore, the UAE, and the European Union have adopted blockchain-supportive regulatory frameworks, attracting capital and talent away from the United States.

According to Cascarilla, without clear guidance from U.S. policymakers, the country risks a steady decline in economic influence.

Cascarilla further indicated that current U.S. regulatory approaches have created obstacles for companies like Paxos, prompting them to seek clarity abroad.

“If U.S. regulators, policymakers, Congress, and the next administration fail to support blockchain and digital asset adoption, the future of our financial industry is at risk,” he said.

“Undoubtedly more capital, jobs, and expertise will migrate to geographies with clear and constructive policies,” Cascarilla warned.