Recently, Paxos CEO Charles Cascarilla sent a letter to presidential candidates Kamala Harris and Donald Trump, urging both to establish more favorable regulations for cryptocurrencies.
In a context where cryptocurrencies have taken a leading role in the global financial landscape, the lack of a clear regulatory framework in the United States has become a critical issue. Therefore, in his letter, Cascarilla highlighted that the current regulatory environment is “inhospitable to financial innovation”, which has been pushing many companies to seek clarity outside of US borders.
With this letter, Cascarilla joins ConsenSys in calling for action for more favorable crypto regulation that encourages development and innovation.
This blockchain infrastructure company has been another one of those that has recently echoed the need to establish a regulatory framework that not only protects consumers, but also encourages innovation and growth in the cryptocurrency sector in the United States.
Last week, ConsenSys sent a letter to the next US president, stressing that appropriate regulation could be an engine for economic development, allowing the United States to maintain its leadership in financial technology.
A Challenging Regulatory Environment: What Would Be the Cost of Uncertainty in the Crypto Industry?
Cascarilla’s letter not only highlights the urgency of favorable regulation, but also criticizes the current environment facing the crypto industry in the country. According to him, the lack of clarity has resulted in unnecessary costs for companies, forcing them to deal with legal actions and questionable banking policies. This climate of uncertainty has led to many digital asset companies moving abroad, putting the United States’ economic competitiveness and national security at risk.
Similarly, like ConsenSys, Cascarilla warned that an uncertain regulatory environment could affect the nation's leadership in the technological field.
So far, US lawmakers have been working in regulating cryptoassets, including stablecoins. However, these efforts have been hampered by disagreements and a lack of consensus on regulatory authority. In the United States, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are they dispute the regulation of cryptocurrencies.
The role of presidential candidates
US presidential candidates Kamala Harris and Donald Trump have both expressed their opinions on cryptocurrencies, but their approaches are markedly different.
On the one hand, Harris has stated that her administration would support innovative technologies, including digital assets, while protecting consumers. On the other hand, Trump has promised to end what he considers an “illegal and un-American crackdown” on the crypto industry, in addition to supporting projects that seek to boost the use of cryptocurrencies. Trump has also promised to remove the current SEC chairman, Gary Gensler, whose regulatory enforcement has been criticized as arbitrary in the crypto industry.
This contrast in the candidates’ stances could have a significant impact on the direction that cryptocurrency regulation will take in the near future. The possibility of one of these candidates taking office could determine how quickly the necessary reforms are implemented to create a more favorable regulatory framework.
The urgency of a regulatory framework
From letterCascarilla highlighted the need for clear and favorable regulation for cryptocurrencies in the United States, indicating that this cannot be underestimated. Cascarilla stressed that companies in the sector, such as his own, Paxos, are demanding an environment that allows them to operate with confidence and that encourages investment in financial technology. He also pointed out that the lack of an adequate regulatory framework is not only affecting these companies, but also putting consumers looking to participate in this new and emerging market at risk.
With the presidential election just around the corner, decisions made in the coming months will have a lasting impact on the future of cryptocurrencies in the United States. The industry is at a tipping point, and the direction it takes will largely depend on the political will of elected leaders to establish a regulatory framework that supports innovation and protects consumers.
In this regard, analysts such as Peter Chung and Min Jung of Presto have pointed out that the increasing likelihood of a Republican victory in the upcoming elections could facilitate the approval of several cryptocurrency bills, favoring innovation and growth in the sector. Other analysts also believe that Harris could strongly favor the crypto sector.
IMPORTANT: The content of this article is for informational purposes only and, in no case, what is written here should be taken as investment advice or recommendations. Bit2Me News reminds you that before making any investment you should educate yourself and know where you invest your money, as well as the pros and cons of the system. We separate ourselves from the actions and consequences that ignorance may entail. If you decide to invest in this or another asset class, you are solely responsible for the consequences that your decisions and actions may have.
