Paxos CEO Appeals to U.S. Congress to Regulate Cross-Border Stablecoins

Paxos has called on the U.S. Congress to set up cross-border stablecoin regulations. Charles B., co-founder and CEO of stablecoin issuer Paxos, said:
Charles Cascarilla is scheduled to testify before the U.S. House of Representatives Financial Services Committee, where he plans to urge Congress to establish cross-border regulatory mutual recognition.
In his prepared testimony, Cascarilla said Paxos's USDG stablecoin was issued through a regulated affiliate in Singapore.
"Products issued through regulated affiliates in Singapore, such as Paxos' USDG, are being pushed into the U.S. market," Cascarilla said in a statement.
"We are concerned that the issue will be left unattended until various ministries and agencies in the country make decisions," he said. He also called for the U.S. Congress to strengthen the current "international regulatory mutual recognition" provisions, particularly the U.S. Treasury Department.
He stressed that the ministry needs a clear and expedited timeline for designating stablecoin regulatory environments in foreign countries. “If such a timeline is set, it will enable swift action and avoid unnecessary delays,” he said.
"This will prevent bureaucratic delays while ensuring a thorough review of overseas regulatory regimes," and if such measures are delayed, it could hinder the introduction of stablecoins such as USDG and the US
"Mutual recognition of regulations is not about lowering standards, it's about raising global standards," he said, adding, "Reserve requirements, monetary policy, and other issues are major obstacles to international and cross-border trade."
By establishing a mechanism to recognize countries with similar regulatory regimes to the United States, including anti-money laundering (AML) measures and cybersecurity regulations, the United States could allow stablecoin issuers to
"This will prevent regulatory profiteering that takes advantage of looser regulations overseas," he added.