Paxos CEO warns US risks losing financial leadership without crypto reform

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In an open letter to Vice President Kamala Harris and former President Donald Trump, Paxos CEO and co-founder Charles Cascarilla warned that America’s financial leadership hinges on whether the next presidential administration embraces digital assets and reforms outdated financial regulations.

Cascarilla urged both political figures to recognize the potential for blockchain and stablecoins to modernize the US financial system, cautioning that without a supportive regulatory environment, the country risks losing its competitive edge in global finance.

He further highlighted that while smartphone adoption has surged, banking access remains limited, with 20% of Americans and 40% of the global population still unbanked or underbanked. He noted that blockchain, paired with US dollar-backed stablecoins, offers a solution, creating a more transparent, inclusive financial system.

Cascarilla emphasized that digital assets were “re-platforming the financial system” so it could operate on the internet in a “safe, secure, and transparent way.” He added:

“Stablecoins or digital dollars — US dollars digitized via blockchain technology — are the crucial upgrade for the payment system that will revolutionize money movement, allow greater participation in the global economy, and ensure the supremacy of the U.S. dollar for years to come.”

Cascarilla expressed frustration over mounting regulatory challenges in the US, pointing to incidents of “regulatory overreach” and complex banking policies, which have pushed Paxos and other firms to consider relocating operations to countries like Singapore and the UAE, where regulatory frameworks foster financial innovation.

Cascarilla’s letter emphasized that the US stands to lose jobs, capital, and technological expertise to jurisdictions that actively support blockchain adoption. He called for bipartisan support to establish a stablecoin framework, arguing that such reforms are vital to maintain America’s influence in global finance and safeguard economic competitiveness.

In closing, Cascarilla appealed for collaboration with the next administration, stressing that a constructive policy approach to blockchain and digital assets would reinforce US economic leadership and “demonstrate US leadership on digital assets” at a critical juncture in financial innovation.