US-based venture capitalists are opposed to proposals that international stubcoin issuers will restrict access to the U.S. Treasury market.
A stubblable regulation battle appears in Washington
Vance Spencer, co-founder of Framework Ventures, criticizes attempts to “block centralized international Stablecoin publishers’ access to the Ministry of Finance market.” According to Spencer, blocking these issuers will not help maintain US dollar hegemony or address the issue of US national debt.
In a post on social media platform X, Spencer said he had little to talk about regulations, but during this period he felt forced to flag a new regulatory battle taking place in DC.
As reported by Bitcoin.com News, one Stablecoin Bill before US lawmakers requires the issuer to hold bills from the US Treasury, particularly the Short-Term Treasury Department. The goal is to ensure stability and protect consumers from potential losses.
If US lawmakers pass the bill in their current form, a ridiculous issuer like Tether, based outside the US, will need to convert assets, including precious metals and secured loans. Spencer argues that “the stubcoin markup to be released soon” will make it impossible for foreign publishers like Tether to follow.
In a post on social media platform X, Spencer explains why such requirements are unlikely to change the Stablecoin market structure.
“Today’s biggest stubcoins are being built overseas, and the biggest source of demand is overseas. This has not changed in any way. The net effect of the ongoing hostile regulatory stance on Stablecoins is to regulate themselves from photos, like in Europe, along with AI,” Spencer explained.
Stablecoin Regulation proposes anti-American branding
Criticism of attempts to use regulations from Framework Ventures’ co-founders to curb competition is shared by US diplomat Richard Grenell. Grenell, the special envoy of the Special President for the US Special Mission, argues that such requirements are “not only a wrong path for the US, they are in complete conflict with the Magazine.”
Spencer’s sentiment is also reflected by CIO Chris Buskirk, co-founder of the 1789 CIO, which branded the proposed laws the “straight anti-crypt, anti-American, harmful to national security.”
Meanwhile, Tether CEO Paolo Aldoino criticized rival Stubcoin issuers, claiming that it was motivated by a desire to undermine USDT rather than building a better product. Without naming the name, Ardoino has vowed to respond to these attacks from competitors, claiming that rival publishers are holding meetings to discuss this purpose.
“The Tethers are not stationary so they won’t make these attacks successful. We can’t allow them. We stand strong to protect hundreds of millions of people around the world who are left behind in the traditional financial system and help them access the US dollar via USDT, but our competitors are ready to put these communities at risk with their greedy quest for monopolies. And we have many friends in the process,” Ardoino writes to X.
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