Vance Spencer, co-founder of venture capital firm Framework Ventures, has opposed the proposed U.S. stablecoin regulatory bill, arguing that it could limit competition and harm the country’s economic interests.
His comments are in response to the “Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act,” which Senator Bill Hagerty introduced on February 4.
The bill, backed by Senators Tim Scott, Kirsten Gillibrand, and Cynthia Lummis, is positioned as part of an effort to establish the U.S. as a leader in cryptocurrency and provide clear regulations for stablecoin issuers.
In a statement, Hagerty said stablecoins could drive demand for U.S. Treasuries and improve transaction efficiency.
Vance Spencer Criticizes Stablecoin Bill, Warns of U.S. Losing Global Edge
Spencer, however, raised concerns about provisions in the bill’s upcoming markup that could restrict access to the Treasury market for internationally based centralized stablecoin issuers.
In a post on X, he called such measures “batshit crazy” and accused U.S. financial players of attempting to manipulate regulations in their favor at the expense of national economic interests.
“This is a blatant attempt at regulatory capture by U.S. players,” Spencer wrote. “Please tell me how limiting access to hundreds of billions of dollars of demand for Treasuries helps us preserve dollar hegemony across the globe, or fix our debt problem.”
Spencer argued that most stablecoin demand and development is happening outside the U.S. and that restricting foreign issuers would push the industry further offshore.
He compared the situation to Europe’s handling of artificial intelligence regulations, suggesting that an overly restrictive approach could result in the U.S. losing its position in the global stablecoin market.
Spencer also pointed to previous regulatory battles in the crypto industry, including resistance to legislation allegedly influenced by FTX in 2021, warning that the current stablecoin and market structure bills could have broader consequences.
“We should not allow the largest players in crypto to dictate terms that favor themselves at the expense of U.S. national interest and the broader industry,” he said.
The GENIUS Act is still in its early stages, and debates over its provisions are expected to continue as lawmakers and industry leaders weigh its potential impact on the stablecoin market.
Lawmakers Push Forward on U.S. Stablecoin Regulation as Debate Intensifies
U.S. lawmakers have taken a major step toward stablecoin regulation with a new discussion draft released on February 7.
House Financial Services Committee Chairman French Hill and Digital Assets Subcommittee Chair Bryan Steil introduced the 47-page proposal, seeking feedback from industry stakeholders.
The draft aims to clarify stablecoin oversight at federal and state levels while reinforcing the dollar’s role as the global reserve currency.
A key provision includes a two-year ban on stablecoins backed solely by self-issued digital assets, pending further risk assessment.
The bill also mandates a Treasury study on stablecoin reserves, technology, and economic impact, with a report due within a year.
Federal Reserve Governor Christopher Waller has voiced support for stablecoins and stressed the need for clear regulations to ensure stability and transparency, adding to the proposal’s confidence.
He highlighted their potential benefits for international finance while calling for oversight to verify reserves.
Despite the various support from key opinion leaders, the industry remains divided on its stance on stablecoins and CBDCs, with some even warning that excessive restrictions could weaken the U.S. position. As discussions continue, the next phase of stablecoin policy in the country hinges on the draft bill.
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