According to @jchervinsky, the claim that a more heavily regulated stablecoin issuer is inherently better is flawed, and the goal should be only as much regulation as necessary. source: Jake Chervinsky (@jchervinsky) on X, Sep 12, 2025. He argues that over-compliance makes issuers slower and more costly, noting that waiting for NYDFS to approve new products is cumbersome and pointing to Paxos as an example. source: Jake Chervinsky (@jchervinsky) on X, Sep 12, 2025. For traders tracking $USDH and NYDFS-regulated stablecoins, this highlights approval latency and compliance overhead as key operational risks for issuance speed and product availability. source: Jake Chervinsky (@jchervinsky) on X, Sep 12, 2025.

According to @MilkRoadDaily, Paxos has applied for a national trust charter with the U.S. Office of the Comptroller of the Currency, with the author noting this would move oversight from a New York-only license to a single federal regulator and would not make Paxos a bank because it involves no lending or deposits. According to the New York State Department of Financial Services, Paxos Trust Company currently operates as a limited purpose trust company supervised by NYDFS. According to Paxos, it issues the USDP stablecoin and serves as issuer for PayPal’s PYUSD, with reserves held in cash and U.S. Treasury instruments and reported in monthly attestations. According to PayPal, PYUSD is an ERC-20 stablecoin issued by Paxos on Ethereum. According to the U.S. Office of the Comptroller of the Currency, national trust banks are federally chartered and supervised by the OCC.