Venture capitalist Vance Spencer criticizes U.S. proposals to restrict international stablecoin issuers from accessing the Treasury market, warning it could weaken dollar dominance. Read more on the stablecoin regulation debate.
Venture Capitalist Warns of Negative Impact on U.S. Dollar Hegemony
Vance Spencer, co-founder of Framework Ventures, has criticized efforts to restrict international stablecoin issuers from accessing the U.S. Treasury market. He believes such measures will not reinforce U.S. dollar hegemony or address national debt concerns but may instead push stablecoin innovation offshore.
In a recent social media post, Spencer expressed concern over what he sees as a regulatory battle unfolding in Washington, D.C. He argues that the largest stablecoins are already established overseas and serve global markets. Blocking them from U.S. Treasuries, he warns, will not change market demand but will instead sideline the U.S. from a crucial financial sector.
Proposed Stablecoin Legislation Faces Industry Criticism
Congress is currently considering bills that would require stablecoin issuers to back their tokens with U.S. Treasuries, particularly short-term Treasury bills. While aimed at ensuring stability, critics argue that such requirements would be impractical for foreign issuers like Tether, which currently holds reserves in various assets, including precious metals and secured loans.
Chris Buskirk, co-founder and CIO of 1789 Capital, also denounced the proposals, calling them “anti-crypto, anti-American, and harmful to national security.” Similarly, U.S. diplomat Richard Grenell accused proponents of these restrictions of trying to stifle competition rather than foster financial stability.
Tether CEO Defends USDT Against Rivals
Tether CEO Paolo Ardoino has weighed in on the debate, suggesting that competing stablecoin issuers are lobbying for regulations that would hinder USDT’s dominance rather than focusing on building a better product. Without naming specific companies, Ardoino claimed that these competitors are actively working against Tether and vowed to protect the company’s role in global finance.
The Future of Stablecoin Regulation
As lawmakers continue to debate stablecoin policies, industry leaders warn that overly restrictive regulations could drive innovation out of the U.S. rather than enhance financial security. Whether Congress ultimately imposes new stablecoin rules or adopts a more open approach remains to be seen.
Stay updated on the latest crypto regulations follow industry experts and policymakers to see how these debates unfold.
