As the U.S. government pushes forward with new regulations on stablecoins, crypto industry leaders aren’t holding back their rage. The GENIUS Act, introduced by Senator Bill Hagerty in February 2025, has sparked a firestorm across the digital asset landscape. And boy, are people mad.
Framework Ventures’ Vance Spencer didn’t mince words when critiquing the bill’s approach to international issuers. He argued that blocking foreign stablecoin companies from accessing U.S. Treasury markets won’t exactly help preserve dollar dominance. Makes sense, right? Hard to maintain global currency leadership when you’re pushing everyone else away.
Chris Buskirk of 1789 Capital went further, labeling the legislation both “anti-crypto” and “anti-American.” Strong words.
Meanwhile, Tether CEO Paolo Ardoino jumped into the fray, accusing competitors of trying to undermine USDT through regulatory channels. Nothing like a little industry infighting during a crisis.
The regulations would establish a framework defining stablecoins as digital assets pegged to fixed monetary values, with oversight allocated based on a $10 billion market cap threshold. Sounds reasonable on paper. In practice? Not so much, according to critics.
Bank of America CEO Brian Moynihan acknowledged the need for clear regulations, but the debate rages over whether state or federal bodies should have primary oversight. Classic turf war stuff.
The international implications could be massive. U.S. regulations might effectively regulate America right out of global crypto leadership. These restrictions could especially impact cross-border transactions which have seen over $2.5 trillion in stablecoin-facilitated payments. Wouldn’t that be something? Years of innovation down the drain because of overzealous rulemaking.
Multiple bills are currently under consideration in Congress, including the STABLE Act in the House and the GENIUS Act in the Senate. Both have some bipartisan support, which is practically a miracle these days.
The stakes couldn’t be higher. Stablecoins could revolutionize transaction efficiency and expand financial inclusion—or they could crash and burn under the weight of well-intentioned but misguided regulations. Critics argue that granting the Federal Reserve substantial oversight creates a troubling conflict of interest since stablecoins directly compete with the Fed’s own payment systems. Senator Cynthia Lummis of Wyoming has been vocal about the need for bipartisan support to create a balanced regulatory approach. The industry is watching. And they’re not happy.
