Charles Cascarilla, the chief executive of Paxos, has shared an open letter with the Republican and Democrat presidential candidates outlining the need for the United States to develop clear rules for digital assets. The letter argued that as crypto evolves, it is important for the United States to prioritize creating a comprehensive framework for digital assets.
The Paxos CEO explained that the future United States financial leadership is not determined by who will retake the White House next week but relies on the amendment of existing financial regulation.
Why is the US Reluctant to Create Stablecoin Rules?
Cascarilla noted that the United States was lagging in developing clear rules for digital assets, which might hurt the American financial leadership position. The executive recognized that the US has been reluctant to tap into the benefits of blockchain and stablecoin.
He regretted that if the United States remains reluctant to develop clear rules, the offshore markets will overtake US global competitiveness. Citing a recent report, Cascarilla noted that the unbanked population remains high despite increased accessibility to smartphones.
The executive noted that approximately 20% of Americans are unbanked. The statistics demonstrate the need for the United States to prioritize improving financial inclusion to provide the unbanked population with economic opportunities.
He explained that dollar-backed stablecoin offers a transparent and decentralized way to complete financial activities. The official believes digitizing the US financial system through blockchain technology will enhance financial inclusivity.
Paxos CEO Urges Next US President to Prioritize Development of Stablecoin Rules
Cascarilla argued that integrating blockchain technology into the American financial system supports fast, reliable, and transparent transactions. Also, digitizing the traditional financial sector encourages more people to contribute to the growth of the global economy.
The Paxos chief recognized that the United States boasts of having a stable currency labelled the supreme dollar over the past years. However, to cement the United States’ global economic competitiveness, it was important for the next administration to create a favourable regulatory environment for crypto assets and stablecoin.
The Paxos CEO noted that United States enforcement actions on digital assets have forced key industrial players in the crypto market to flee to UAE, Hong Kong, and others. He noted that Paxos was among the companies relocating to offshore markets due to regulatory pressure in the US.
The unattractiveness of the United States crypto market, combined with complex banking policies, undermined the growth of the financial sector. The executive regretted that unclear regulation in the US undermined financial innovation in the region.
How Will the US Boost its Financial Leadership?
In his letter, the executive outlined the risks of excess regulatory overreach for digital assets in the United States. Cascarilla laments that if incoming leadership fails to amend the financial rules, the US might face unemployment issues and professional gaps in blockchain and crypto technologies. To avoid this, Cascarilla emphasized that it was important for the US to develop stablecoin legislation.
The Paxos CEO noted the US House Financial Services Committee approved the Clarity for Payment Stablecoin Act of 2023. Guided by the rule-making process, the bill will undergo various review processes before it’s submitted to the House and Senate for approval.
If the bill is approved into law, the Paxos CEO projects that the United States will have well-defined rules for digital assets. He advised the next government to embrace a constructive policy approach, bringing together key industrial players, experts, and legislators to participate actively in developing stablecoin rules.
He believes that if the United States collaborates to develop effective stablecoin rules, the country will become a global leader in digital assets.
Conclusion
Cascarilla’s letter mirrors an earlier report from the vice president of Circle Yam Ki Chan, urging the US to place the development of stablecoin rules on its top agenda.
He encouraged the US to emulate countries like Hong Kong and the EU’s market for crypto assets (MiCA) rules. However, if the US remains reluctant to develop stablecoin rules, the CEO regrets that America might lose its global competitiveness.
To boost the United States’ financial inclusion and economic position, the incoming government needs to expedite the development of clear rules for digital assets such as stablecoins.
For more updates on whether Donald Trump or Kamala Harris will prioritize the development of well-defined crypto and stablecoin rules, follow TurkishNY Radio on Tumblr, Telegram, and LinkedIn.
