US lawmakers are set for a heated debate on stablecoin regulation, with key industry leaders expected to outline their vision for the future of digital asset oversight.

Charles Cascarilla, co-founder and CEO of stablecoin issuer Paxos, is scheduled to testify before the House Financial Services Committee, where he will urge lawmakers to establish “cross-jurisdictional reciprocity” in stablecoin regulations.

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.

US must act to prevent regulatory stablecoin arbitrage

Cascarilla 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.

Cascarilla 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 EU

Cascarilla’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).

Since the MiCA framework went into full force in December 2024, multiple crypto asset service providers in the EU — including Crypto.com and Coinbase — have announced the delistings of Paxos stablecoins, including Pax Dollar (PAX) and Pax Gold (PAXG).

While Paxos’ Cascarilla is now calling for the US to take urgent action in forcing a global framework for stablecoin issuers that are regulated outside of the US, some industry CEOs have urged all stablecoin firms to get regulated domestically instead.

In February, Circle co-founder Jeremy Allaire argued that all dollar-based stablecoin issuers should register in the US, citing consumer protection and fair competition in the crypto market. He stated:

“Whether you are an offshore company or based in Hong Kong, if you want to offer your US dollar stablecoin in the US, you should register in the US just like we have to go register everywhere else.”

Issued and regulated in the US, Circle’s USDC (USDC) stablecoin was officially approved as the first MiCA-compliant stablecoin in 2024.

Magazine: How crypto laws are changing across the world in 2025

The X account of Meteora co-founder Ben Chow was reported to have been hacked after it posted a tweet reigniting the controversy around the launch of the Libra (LIBRA), Melania Meme (MELANIA) and Official Trump (TRUMP) memecoin tokens that ultimately led to his resignation.

On March 11, Chow’s X account posted an “official statement” about his departure from Meteora. The post called out DefiTuna founders Vlad Pozniakov and Dhirk, claiming the duo’s sole intention was to extract the maximum funds possible from various memecoin token launches, including MELANIA, Mates (MATES) and a Raydium launch.

“As a long time Solana builder, the reason I stepped down is because I am far too trusting for how parasitic the memecoin space is.”

The controversial memecoin plot thickens for Meteora 

However, Meteora’s official X account flagged the post as fraudulent, claiming that Chow’s X account was compromised and urged users to refrain from clicking on any links.

Chow did not respond to Cointelegraph’s request for comment. The fraudulent tweet has since been deleted after the account was recovered by Meteora.

Chow’s message contained alleged screenshots of WhatsApp conversations between Kelsier Ventures CEO Hayden Davis, Kelsier Ventures’ chief operating officer Gideon Davis, and Pozniakov discussing the MATES token, where one was quoted saying: “Yeah fellas tbh we are trying to max extract on this one.”

The legitimacy of the conversations could not be verified.

Meteora co-founder Zen, who has since taken up the role of CEO, said that Meteora’s X account was also compromised along with Chow’s:

“It’s true that someone gained access momentarily to our Meteora X account. We’ve since reset the account and now verifying.”

Investors were advised against clicking on any links shared from the accounts to avert financial losses.

Related: Milei’s ‘Libragate’ scandal, explained: What’s behind the controversy?

Implications of memecoin speculation in Argentine politics

Argentine President Javier Milei is facing calls for impeachment after endorsing a Solana-native LIBRA token. Milei’s endorsement caused the token’s value to surge from near zero to $5, briefly reaching a $4 billion market capitalization.

However, a massive sell-off event followed that caused LIBRA’s value to drop rapidly, wiping out millions in investor funds in the process.

Milei dismissed rug pull allegations, claiming that he regularly promotes business projects as part of his free-market philosophy. His endorsement of the KIP Protocol, the developers behind LIBRA, was a part of the broader policy.

Magazine: Mystery celeb memecoin scam factory, HK firm dumps Bitcoin: Asia Express