A forthcoming stablecoin bill markup could reportedly cut offshore access to U.S. Treasury markets, raising concerns about private interests and impartial lawmaking.
Tether CEO Paolo Ardoino publicly shared his views on what he described as an apparent plan to “Kill Tether” amid developments surrounding stablecoin legislation on Capitol Hill.
On Tuesday, Feb. 25, Framework Ventures co-founder Vance Spencer raised alarms about a “soon-to-be-revealed stablecoin markup”. Spencer claimed the proposed changes would block centralized international stablecoin issuers from accessing U.S. Treasury markets, according to a post on X.com.
“This is a blatant attempt at regulatory capture by U.S. players done at the expense of U.S. national interest,” Spencer criticized.
U.S. dollar-pegged tokens dominate the stablecoin market, with giants like Tether (USDT) and Circle (USDC) relying on Treasury Bills for most of their reserves. Circle has initiated a relocation to New York, while Tether plans to set up shop in El Salvador.
In theory, the stablecoin bill changes Spencer alluded to could restrict Tether and other foreign issuers from accessing a key reserve asset.
U.S. policymakers have presented two separate stablecoin proposals: the GENIUS Act in the Senator by Senators Tim Scott, Bill Hagerty, Cynthia Lummis, and Kirsten Gillibrand and its House counterpart called the STABLE Act presented by Representatives French Hill and Bryan Steil.
Spencer did not specify which bill proposed cutting access to Treasury markets.
The largest stablecoins today are built overseas, and the largest source of demand is overseas – this is not changing no matter what. The net effect of a continued hostile regulatory stance towards stablecoins will only be to regulate ourselves out of the picture like Europe with AI.
Vance Spencer, Framework Ventures co-founder
Responding to Spencer’s tweet, Ardoino claimed competitors were using political connections to isolate Tether from the U.S. stablecoin landscape. Ardoino didn’t directly name any company, but speculators surmised the post referred to top-ranking stablecoin issuers.
Strive Funds CEO Matt Cole, and several commenters on social media, suggested Circle, Tether’s biggest rival and the second-largest stablecoin issuer, was behind the so-called “regulatory capture” attempt.
While our competitors’ business model should be to build a better product and even bigger distribution network, their real intent is “Kill Tether”. Every single business or political meeting that they have culminates with this intent.
Paolo Ardoino, Tether CEO
crypto.news reached out to Tether and Circle for comment.
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