“Decentralized Ponzi Scheme”- Gold Bug Peter Schiff Slams Landmark Crypto Bills
Highlights
- Peter Schiff believes that the crypto bills are designed to falsely legitimize Bitcoin.
- Schiff argued that dollar-pegged stablecoins are only as reliable as the dollar itself, which he believes is in decline.
- He said that the Trump administration promoting Bitcoins would only aid the collapse of the US Dollar.
Peter Schiff blasts the US president for signing crypto bills, including the GENIUS Act, CLARITY Act, and anti-CBDC laws, calling them mere tools to pump up Bitcoin. Schiff argues that the stablecoin bill won’t help the struggling US dollar.
The passing of the landmark bills has proved to be a sell-the-news event for the crypto market, with Bitcoin (BTC) down 2% today, while altcoins like ETH, XRP, BNB, SOL, etc. see some pullback after a mega rally.
Peter Schiff Calls Crypto Bills “A Legislative Low Point”
US President Donald Trump signed the GENIUS Act into law on Friday, along with passing two other “Crypto bills,” aka CLARITY Act, anti-CBDC Act. Although some lawmakers and the crypto community called it a landmark moment for the digital assets industry, Peter Schiff has slammed the Trump administration.
Schiff believes that the primary purpose behind these bills is to boost legitimacy for Bitcoin, describing it as “decentralized Ponzi scheme”. According to the critic, these legislative efforts are being leveraged to inflate hype around Bitcoin and other digital assets. “The industry is using them to hype Bitcoin and other cryptos so insiders can cash out at higher prices. It’s a legislative low point,” wrote Schiff.
A day before, US President Donald Trump also talked of signing an executive order to facilitate 401K retirement investment in Bitcoin and crypto. Schiff believes that such a promotion for digital assets would only accelerate the collapse of US dollar. “Bitcoiners may cheer, as most bought Bitcoin to profit from a dollar crash. But ironically, gold will be the winner as Bitcoin will crash too,” he added.
Stablecoins Won’t Lead to US Dollar Dominance
With Donald Trump signing the GENIUS Act bill into law along with other crypto bills, crypto industry veterans like Paolo Ardoino stated that this would “cement the dollar’s global dominance.”
However, Peter Schiff called this narrative “nonsense”. With the US Dollar losing its strength over time, Schiff believes that the USD-pegged stablecoins will be only “as stable as the U.S. dollar itself” and that this stability will also erode over time.
Schiff has been an ardent critic of Bitcoin for years and believes that Gold is the only store of value. He has also criticized the Trump administration several times in the past for taking a pro-crypto stance.
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