Arweave (ar) 
Stablecoin Bill Markup Raises Concerns Over Private Interests and Impartial Lawmaking
A proposed stablecoin bill markup has sparked concerns about private interests and impartial lawmaking, with reports suggesting it could cut offshore access to U.S. Treasury markets. The potential changes have raised alarms among industry experts, including Tether CEO Paolo Ardoino, who publicly expressed his views on what he described as an apparent plan to “Kill Tether.”
Impact on Stablecoin Issuers
The proposed changes would block centralized international stablecoin issuers from accessing U.S. Treasury markets, according to Framework Ventures co-founder Vance Spencer. This move could restrict Tether and other foreign issuers from accessing a key reserve asset, as U.S. dollar-pegged tokens dominate the stablecoin market. Giants like Tether and Circle rely heavily 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. However, the potential changes could limit their access to U.S. Treasury markets, which could have significant implications for the stablecoin market.
Regulatory Capture Concerns
Spencer criticized the proposed changes, stating that it is “a blatant attempt at regulatory capture by U.S. players done at the expense of U.S. national interest.” Tether CEO Paolo Ardoino also responded, claiming that competitors are using political connections to isolate Tether from the U.S. stablecoin landscape.
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.
Ardoino’s comments sparked speculation that the post referred to top-ranking stablecoin issuers, with some suggesting that Circle, Tether’s biggest rival, was behind the so-called “regulatory capture” attempt.
Stablecoin Market Implications
The largest stablecoins today are built overseas, and the largest source of demand is overseas. The net effect of a continued hostile regulatory stance towards stablecoins will only be to regulate ourselves out of the picture, according to Vance Spencer.
Tether has built a significant presence in the stablecoin market, with a wide physical and digital distribution network. The company’s USDt is seen as a successful tool for U.S. Dollar hegemony and distribution across emerging markets.
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