Former CFTC Chair Giancarlo joins crypto firm Paxos

Christopher Giancarlo, the former head of the U.S. Commodity Futures Trading Commission (CFTC), has joined the board of directors at stablecoin issuer Paxos.

Giancarlo, who is also known as “CryptoDad,” will work alongside other board members, including former U.S. Senator Bill Bradley, D-N.J. Paxos CEO Charles Cascarilla welcomed Giancarlo, highlighting his advocacy for blockchain technology.

“He has been at the forefront of advocating for blockchain to improve the infrastructure of our financial system,” Cascarilla said. “His insights will support us as we expand our position as a leader in regulated digital asset market structure and stablecoin innovation.”

Paxos is known for issuing stablecoins such as PayPal USD, Pax Dollar (USDP), and Pax Gold. The company is regulated by the New York Department of Financial Services. Last year, Paxos faced regulatory scrutiny over its ties to Binance’s USD stablecoin, leading to the cessation of Binance USD issuance.

The full scope of the SEC’s investigation is unclear. But the US regulators have been questioning crypto firms over their practices around handling clients’ digital assets. The probe has gathered pace in the wake of the collapse of Sam Bankman-Fried’s crypto empire.

Giancarlo served as CFTC Chair from March 2017 to April 2019, overseeing the launch of the first bitcoin futures products. He later authored “CryptoDad: The Fight for the Future of Money,” a book on bitcoin derivatives. He also co-founded the Digital Dollar Project, a forum for exploring digital currency innovation, including a potential U.S. central bank digital currency.

“I’m honored to join Paxos’s board and be a part of innovation in the financial sector,” Giancarlo said in a statement. “Paxos’s commitment to compliance and dedication to building a more efficient and inclusive financial system resonates deeply with me.”

Paxos has recently received the green light from the New York Department of Financial Services (DFS) to extend its operations to the Solana blockchain. Until now, Paxos has been restricted to issuing its Pax Dollar (USDP) stablecoin exclusively on the Ethereum network.

Paxos’s expansion isn’t limited to Solana. The company is actively seeking regulatory approval to operate on other layer-1 and layer-2 blockchains. Additionally, Paxos has been broadening its international presence. In November, the company announced preliminary approval from Singapore’s regulatory authorities to launch a U.S. dollar-backed stablecoin. Moreover, Paxos also received approval from Abu Dhabi’s regulators to issue stablecoins and offer digital asset services in the emirate.