The U.S. tries to control how international companies issue stablecoins, those cryptocurrencies pegged to the value of traditional currencies like the U.S. dollar.
Sounds like a recipe for controversy, right? But that’s exactly what’s brewing in Washington, with some big players in the crypto industry sounding the alarm.
The regulation debate
Vance Spencer, co-founder of Framework Ventures, is one of those voices, as he’s slamming proposals that would block international stablecoin issuers from accessing the U.S. treasury market.
Spencer argues that this move won’t help the U.S. dollar stay on top or fix America’s debt issues.
Instead, it could push the U.S. out of the stablecoin game altogether, much like what happened with AI in Europe.
The proposed rules are anti-American?
One of the bills floating around in Congress requires stablecoin issuers to hold U.S.
Treasuries, like short-term Treasury bills, to keep stablecoins stable and protect consumers. Sounds reasonable, but it’s a tough ask for international issuers like Tether.
They’d have to convert assets like precious metals and secured loans, which Spencer says is just not feasible.
And of course, Spencer isn’t alone in his criticism, as U.S. diplomat Richard Grenell and Chris Buskirk, co-founder of 1789 Capital, are also speaking out against these regulations. They call them anti-American and harmful to national security.
Tether CEO Paolo Ardoino is even accusing rival issuers of trying to undermine his company’s stablecoin, USDT, rather than building better products.
They want to control everything?
This isn’t just about stablecoins, it’s about who gets to control the future of digital currency.
If the U.S. pushes too hard, it might find itself on the sidelines, without industry participants, while other countries take the lead.
It’s a high-stakes game, and the crypto industry is watching closely. So, will the U.S. find a way to regulate stablecoins without choking off innovation, or will it risk losing its edge in the global crypto race? This is the trillion-dollar question.
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