In a letter addressing both Democratic nominee Vice President Kamala Harris and Republican nominee Former President Donald Trump, Paxos CEO Charles Cascarilla urged that establishing a regulatory framework for stablecoins should be a priority for the next presidential administration, regardless of who wins the election. Cascarilla’s letter, dated October 29, emphasized the U.S. is at risk of losing its leadership position in the global financial sector without clear, progressive regulation in place.
Cascarilla underscored the pressing need to modernize the U.S. financial system, warning that the nation could become the “Rust Belt of financial services” without decisive action. He stressed that stablecoins, or digital dollars—U.S. dollars digitized via blockchain—are the vital upgrade that will drive innovation, streamline money transfers, and strengthen the position of the U.S. dollar on the world stage.
“The global financial system is closed, outdated, and inefficient,” Cascarilla wrote, highlighting that while technology has propelled rapid innovation across industries, finance lags significantly behind, particularly in terms of accessibility. Despite advancements, 20% of the U.S. population and 40% of the global population remain unbanked or underbanked. In contrast, smartphone adoption has reached over 95% of Americans and 70% of the global population, illustrating an opportunity to bring banking up to speed with digital solutions.
In his letter, Cascarilla expressed disappointment over the increasingly restrictive environment in the U.S., where regulatory “overreach” and “onerous legal actions” have discouraged financial innovation. He noted that this hostility has driven Paxos and similar firms to seek regulatory clarity outside the U.S., in regions like Singapore, the UAE, and the European Union. These regions have quickly developed structured frameworks to support digital asset innovation, with Paxos expanding into the UAE to accommodate international demand for regulated stablecoins. This expansion includes Paxos International’s recent launch of Lift Dollar (USDL), a unique, yield-bearing stablecoin available through Abu Dhabi Global Market (ADGM), which distributes yield daily from short-term U.S. government securities.
Paxos CEO emphasized the economic threat posed by this regulatory lag, predicting that without urgent reforms, capital, jobs, and innovation will continue to shift toward regions with more supportive policies. Additionally, the lack of stablecoin regulation could cause digital dollars to move offshore, beyond U.S. regulatory oversight—a potential risk to U.S. national security and economic competitiveness.
Despite these challenges, Cascarilla remains optimistic about bipartisan interest in establishing a stablecoin regulatory framework that fosters innovation and restores U.S. leadership in digital assets. He concluded the letter by urging the next administration to work alongside Congress to craft a stablecoin framework that prioritizes safety and innovation, ensuring the U.S. remains at the forefront of the global financial industry.
“We look forward to collaborating with the next administration and lawmakers of both parties to craft and implement a stablecoin framework that drives innovation and demonstrates U.S. leadership on digital assets,” Cascarilla wrote.
As the U.S. election approaches, industry observers are watching closely to see how the next administration will respond to these calls for modernization in the financial sector.
