Regulatory overreach could cost America jobs and tech expertise, says Paxos CEO in a call for crypto-friendly policies.
In an open letter to Vice President Kamala Harris and former President Donald Trump, Paxos CEO and co-founder Charles Cascarilla warned that America's financial leadership could depend on whether the next administration embraces digital assets and reforms outdated financial regulations.
Cascarilla urged both leaders to acknowledge the potential of blockchain and stablecoins to modernize the U.S. financial system. He cautioned that without a supportive regulatory environment, the U.S. risks losing its competitive edge in global finance.
He also highlighted that despite the widespread adoption of smartphones, banking access remains limited, with 20% of Americans and 40% of the global population still unbanked or underbanked. Blockchain, combined with U.S. dollar-backed stablecoins, he argued, offers a solution, promoting a more transparent and inclusive financial system.
Cascarilla emphasized that digital assets are “re-platforming the financial system,” allowing it to operate online in a “safe, secure, and transparent way.” He added:
“Stablecoins, or digital dollars—U.S. dollars digitized through blockchain technology—are a vital upgrade to the payment system that will transform money movement, expand participation in the global economy, and sustain the supremacy of the U.S. dollar for years to come.”
Expressing frustration with increasing regulatory hurdles in the U.S., Cascarilla pointed to instances of “regulatory overreach” and complex banking policies that have led Paxos and other firms to consider relocating operations to countries like Singapore and the UAE, where regulations support financial innovation.
Cascarilla warned that the U.S. stands to lose jobs, capital, and technological expertise to regions that actively support blockchain. He called for bipartisan support for a stablecoin framework, arguing that such reforms are crucial for maintaining America’s influence in global finance and ensuring economic competitiveness.
In closing, Cascarilla urged collaboration with the next administration, stressing that a constructive policy on blockchain and digital assets would bolster U.S. economic leadership and “demonstrate U.S. leadership on digital assets” at this pivotal moment in financial innovation.