KEY POINTS
- Cascarilla warned that the US is at risk of becoming the world's 'Rust Belt of financial services'
- He said the US regulatory space has become 'inhospitable,' pushing Paxos and other firms to seek clarity outside the country
- He also specifically urged Trump and Harris to establish a 'stablecoin framework' for further clarity
The U.S. election is less than a week away, and the CEO of regulated blockchain and tokenization platform Paxos has urged ex-president Donald Trump and Vice President Kamala Harris to address hostile regulatory approach towards digital assets.
Paxos CEO Charles Cascarilla is just one of a growing list of cryptocurrency industry leaders who have called on this year's candidates to take into account the current administration's approach toward regulating the sector.
US At Risk of Becoming Financial 'Rust Belt'
For Cascarilla, the next administration, whether it be led by Trump or Harris, will ultimately determine whether the United States retains its leadership in the global financial space, or whether it "forfeits that leadership."
"We are at risk of becoming the Rust Belt of financial services, and American prosperity and jobs are at stake," he wrote in an open letter to the Republican and Democratic presidential candidates.
Cascarilla went on to argue that while the financial industry is vital to the U.S. economy, "it operates at the speed of the post office" while other key sectors that boost the economy have already rapidly innovated by their successful integration of technology and the internet economy.
"Now is the opportunity to rethink how innovation can unravel the layers of financial opacity, complexity and risk that are holding back our economy," he wrote.
US Has Become an 'Inhospitable' Place for Innovation
Before calling out the current administration's hostile regulatory approach toward digital assets, Cascarilla first pointed out how Paxos has approached its business on a "regulatory-first" standard.
Paxos became the first digital asset company in the U.S. to have been approved for a limited purpose trust charter from the New York Department of Financial Services (NYDFS) and since then has pioneered the tokenization industry's issuance of "prudentially-regulated, U.S. dollar-backed stablecoins."
The crypto executive went on to explain how "the U.S. has become an inhospitable place for financial innovation," and in the last four years, Paxos and other blockchain and crypto service providers in the country faced "countless examples of regulatory overreach, questionable banking policies and onerous and needless legal actions, resulting in enormous costs in wasted time and money."
He said the regulatory space's "hostility" has only stifled industry growth, with crypto and blockchain firms seeking regulatory clarity "outside of the U.S." He noted how the UAE, Singapore and even the European Union "quickly capitalized" on the missteps the country has taken and come up with productive and regulated regimes to support safe innovation.
A Call to Action for a Country Being Left Behind
Cascarilla urged both leaders to "implement a more welcoming and clearly defined regulatory environment for digital assets." He said Paxos is looking forward to collaborating with the next batch of leaders in both parties "to craft and implement a stablecoin framework" that both supports innovation and demonstrates the country's lead in the digital assets sector.
The call to action comes as crypto users band together to demand clear regulations that specifically provide clarity for the booming industry.
The U.S. Securities and Exchange Commission (SEC) has been at center of such demands, especially as lawmakers join crypto users in criticizing the financial regulator's approach.
