Framework Ventures’ Vance Spencer Slams U.S. Stablecoin

Vance Spencer, co-founder of Framework Ventures, has voiced strong opposition to efforts to limit centralized international stablecoin issuers’ access to U.S. Treasury markets.

According to Spencer, such policies do nothing to preserve U.S. dollar hegemony or address national debt concerns. Instead, they risk pushing stablecoin adoption further offshore, diminishing America’s influence over global digital finance.

🚨 A Growing Regulatory Battle in Washington

Spencer, who rarely speaks on regulation, felt compelled to comment on what he sees as an escalating battle in Washington, D.C. over stablecoin oversight.

“The largest stablecoins today are built overseas, and the largest source of demand is overseas – this is not changing no matter what.”

His remarks come as U.S. lawmakers consider new legislation requiring stablecoin issuers to hold U.S. Treasuries, particularly short-term Treasury bills, to ensure price stability and consumer protection.

However, if passed in its current form, the bill would force issuers like Tether (USDT)—which operates outside the U.S.—to restructure their reserves, including converting precious metals and secured loans into Treasuries.

Spencer warns that the impending stablecoin markup bill could effectively block non-U.S. issuers like Tether from compliance, further pushing them away from U.S. markets.

🛑 U.S. Risks “Regulating Itself Out of the Picture”

Spencer compared the U.S. regulatory approach to stablecoins to Europe’s restrictive AI regulations, arguing that a hostile stance toward stablecoins will only cause America to fall behind.

🔹 Restrictive laws won’t change the stablecoin market structure.
🔹 Demand for stablecoins is overwhelmingly international.
🔹 Banning offshore issuers like Tether won’t stop global adoption.

“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.”

📢 Political & Industry Leaders Push Back Against Stablecoin Crackdown

Spencer isn’t alone in his concerns.

🔹 U.S. diplomat Richard Grenell—a special presidential envoy—blamed Operation Chokepoint 2.0 for targeting stablecoins, calling the move “anti-MAGA” and bad for the U.S. economy.
🔹 Chris Buskirk, co-founder of 1789 Capital, called the proposed bill “straight-up anti-crypto, anti-American, and harmful to national security.”

Meanwhile, Tether CEO Paolo Ardoino accused rival stablecoin issuers of pushing regulations designed to weaken USDT.

Without naming specific competitors, Ardoino claimed that industry players are actively meeting to undermine Tether’s dominance, warning that their actions could hurt financial inclusion worldwide.

“Tether won’t stand still, and we won’t let these attacks succeed. We’ll stand strong to protect the hundreds of millions of people left behind by the traditional financial system.”

🔮 The Future of Stablecoin Regulation

The stablecoin regulatory debate is far from over.

The U.S. government faces a choice:

1️⃣ Create clear, innovation-friendly regulations that allow U.S. stablecoins to compete globally.
2️⃣ Overregulate the market, forcing liquidity offshore and ceding dominance to non-U.S. issuers.

With Tether still dominating and global demand for stablecoins increasing, restrictive policies could backfire, weakening America’s financial influence over digital assets.

As Washington prepares for key decisions on stablecoin laws, the crypto industry is watching closely—and preparing for a fight over the future of the dollar’s digital presence.