Source: House Committee on Financial ServicesCascarilla emphasized that potential delays in applying such action would be a major hurdle in the adoption and distribution of stablecoins like USDG in the US as well as cross-border operations. “Reciprocity is not about lowering standards — it’s about raising them globally,” Cascarilla said, adding:“By establishing a framework to recognize jurisdictions with comparable regulatory regimes — covering reserve requirements, AML measures and cybersecurity protocols — the United States can prevent regulatory arbitrage, where issuers exploit lax oversight abroad.”Paxos stablecoins were deemed non-compliant in the EUCascarilla’s remarks come amid some Paxos-issued stablecoins facing compliance issues in the European Union following the enforcement of its crypto regulation framework, Markets in Crypto-Assets (MiCA).
US must act to prevent regulatory stablecoin arbitrageCascarilla recommended US lawmakers strengthen the current “international reciprocity language” to include clearly defined, accelerated timelines for the US Treasury Department to designate overseas jurisdictions for stablecoin regulation.“This timeframe would force swift action and prevent bureaucratic delays while guaranteeing thorough scrutiny of foreign regulatory regimes,” the executive said.
In his prepared testimony, Cascarilla flagged concerns about the existing hurdles in the adoption of Paxos’ Global Dollar (USDG) stablecoin due to it being issued via a regulated affiliate in Singapore.“We fear that products like Paxos’ Global Dollar (USDG) stablecoin, issued by a regulated affiliate in Singapore, will languish while departments and agencies make their determinations,” Cascarilla wrote in his speech.
The story "Paxos CEO urges US lawmakers to set cross-border stablecoin regulation" has 470 words across 12 sentences, which will take approximately 2 - 4 minutes for the average person to read.
Which news outlet covered this story?
The story "Paxos CEO urges US lawmakers to set cross-border stablecoin regulation" was covered 1 days ago by Coin Telegraph, a news publisher based in United States.
How trustworthy is 'Coin Telegraph' news outlet?
Coin Telegraph is a fully independent (privately-owned) news outlet established in 2013 that covers mostly crypto news.
The outlet is headquartered in United States and publishes an average of 1026 news stories per day.
It's most recent story was published 8 hours ago.
What do people currently think of this news story?
The sentiment for this story is currently Negative, indicating that people regard this as "bad news".
How do I report this news for inaccuracy?
You can report an inaccurate news publication to us via our contact page. Please also include the news #ID number and the URL to this story.
