Congressional Leaders Slam Proposed Stablecoin Regulation for Favoring Domestic Issuers

Stablecoin Bills Unfairly Box Out Tether, House Majority Whip Emmer Claims

A recent push to regulate stablecoins in the United States has sparked controversy, with House Majority Whip Tom Emmer claiming that the proposed bills unfairly target Tether (USDT), the largest stablecoin by market capitalization.

The proposed legislation, which aims to bring stablecoins under the same regulatory framework as other cryptocurrencies, has been met with criticism from some quarters. Emmer, a Republican from Minnesota, has taken issue with the language used in the bills, which he believes is overly broad and could have a disproportionate impact on Tether.

"We're not trying to regulate stablecoins, we're trying to regulate the companies that issue them," Emmer said in a statement. "But the way these bills are written, it's like they're trying to box out Tether and make it impossible for them to operate in the US."

Emmer's concerns are echoed by some in the stablecoin community, who argue that the proposed legislation could stifle innovation and limit the growth of the sector.

"Tether is the most widely used stablecoin out there, and these bills would essentially make it impossible for them to operate in the US," said a spokesperson for the Stablecoin Association, a trade group that represents the interests of stablecoin issuers. "It's like the regulators are trying to pick winners and losers, and that's not what we're looking for in a regulatory framework."

The proposed bills are still in the early stages of the legislative process, and it remains to be seen how they will ultimately be shaped. However, the controversy surrounding Tether has already sparked a heated debate about the role of stablecoins in the US financial system.