American legislators are ready for a heated debate on the regulation of Stablescoin, the main industry leaders should describe their vision of the future of the surveillance of digital assets.
Charles Cascarilla, co-founder and CEO of Stablecoin Paxos, should testify before the Chamber’s Financial Services Committee, where he urges the legislators to establish a “trans-jurisdictional reciprocity” in the regulations of the stables.
In his prepared testimony, Cascarilla reported concerns about existing obstacles in the adoption of the PAXOS Global Dollar (USDG) stable because of its publication via a regulated affiliate in Singapore.
“We fear that products like the Stablecoin Global Dollar (USDG) of Paxos, published by a regulated affiliate in Singapore, languish while the departments and agencies take their determinations,” wrote Cascarilla in his speech.
The United States must act to prevent the regulatory arbitration of stablecoin
Cascarilla has recommended that American legislators strengthen the current “international reciprocity” to include clearly defined and accelerated accelerated deadlines for the US Treasury Department to designate jurisdictions abroad for Stablecoin’s regulations.
“This period would force rapid action and prevent bureaucratic delays while guaranteeing an in -depth examination of foreign regulatory regimes,” said the manager.
Source: Committee of the Chamber of Financial Services
Cascarilla stressed that potential delays in applying such action would be a major obstacle to the adoption and distribution of stablescoins such as the USDG in the United States as well as cross-border operations.
“Reciprocity does not consist in reducing standards – it is a question of raising them worldwide,” said Cascarilla, adding:
“By establishing a framework to recognize jurisdictions with comparable regulatory regimes – covering reserve requirements, LMA measures and cybersecurity protocols – the United States can prevent regulatory arbitration, where transmitters exploit lax surveillance abroad.”
Stablecoins Paxos have been deemed not compatible in the EU
The cascarillala remarks occur in the middle of certain staboins emitted by paxos faced with compliance problems in the European Union following the application of its cryptographic regulatory framework, cryptocurrency markets (Mica).
Since the Mica frame has entered into force in December 2024, several providers of cryptographic asset services in the EU – including Crypto.com and Coinbase – have announced the crimes of Stablecoins Paxos, including Pax Dollar (Pax) and Pax Gold (Paxg).
While Cascarilla de Paxos now calls on the United States to take urgent measures to force a global framework for stable issuers that are regulated outside the United States, some CEOs in industry have urged all Stablecoin companies to be regulated at the national level.
In February, the co-founder of Circle, Jeremy Allaire, argued that all dollar stable transmitters should register in the United States, citing consumer protection and fair competition on the cryptography market. He said:
“Whether you are an offshore or Hong Kong company, if you want to offer your Stablecoin to your US dollar in the United States, you should register in the United States as we have to register everywhere else.”
Emitted and regulated in the United States, the Stablecoin USDC (USDC) of Circle was officially approved as the first Stablecoin compliant with Mica in 2024.
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