Peter Schiff Slams Stablecoins as ‘Crypto Casino Chips’ Amid U.S. Senate Push for Tighter Regulation
Outspoken economist and veteran fund manager Peter Schiff reignited his criticism of the crypto sector on Friday, May 23 — this time taking direct aim at stablecoins.
In a sharply worded post on X (formerly Twitter), Schiff dismissed U.S. dollar-backed stablecoins as “economically worthless,” claiming they contribute nothing to the broader U.S. economy or its ballooning federal deficit.
“Stablecoins won’t do anything to help the U.S. economy or finance the U.S. government’s exploding deficits,” Schiff wrote. “The primary use of stablecoins will be as trading pairs with other crypto tokens, mainly Bitcoin. The main purpose is to draw more money into the crypto casino.”
His remarks come at a time when lawmakers and regulators are placing stablecoins under the microscope. The $150 billion market has surged in recent years, prompting both enthusiasm and concern in Washington.
In response to industry growth and concerns over systemic risk, the U.S. Senate recently advanced the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins) with a decisive 66-32 bipartisan vote on May 19. The legislation seeks to bring stability to the market by requiring stablecoin issuers to maintain full reserves, undergo regular audits, and ban the issuance of uncollateralized algorithmic stablecoins.
In parallel, Congress has also proposed the Stablecoin Act, which would impose licensing requirements and federal oversight on stablecoin providers.
While critics like Schiff dismiss stablecoins as speculative tools, industry advocates argue the opposite — asserting that dollar-pegged tokens like USDT and USDC offer real-world utility. They say stablecoins can streamline cross-border payments, enhance digital financial access in underserved regions, and modernize global payment systems.
