Gold supporter and longtime cryptocurrency critic Peter Schiff has targeted the latest cryptocurrency support move by the US government, calling the GENIUS Act, the CLARITY Act, and the newly signed anti-CBDC bill a "low point in legislation."
While the cryptocurrency community, including Ripple CEO Brad Garlinghouse, welcomes the passing of these bills as a historic victory for digital assets, Schiff warns that they could actually weaken the US dollar and promote what he calls a "decentralized Ponzi scheme" in Bitcoin.
Cryptocurrency Bill Causes Market Retreat
Instead of rising due to news, cryptocurrency prices are falling. Bitcoin (BTC) is down 2%, while leading altcoins like Ethereum (ETH), Ripple (XRP), Binance Coin (BNB), and Solana (SOL) have also dropped after recent price increases.
Schiff believes this proves that the law is more about hype than substance.
He stated: "This industry is using these bills to pump up the prices of Bitcoin and other cryptocurrencies so insiders can sell at a higher price," while warning that these bills are pushing short-term profits but causing long-term instability.
Schiff: Stablecoin Will Not Save the USD
The GENIUS Act supports stablecoins pegged to the dollar, a move praised by industry leaders like Chris Pavlovski of Rumble and Coinbase CEO Brian Armstrong, who argue that this move will strengthen the global position of the dollar.
But Schiff completely disagrees.
He argues that: "Stablecoins are only as strong as the US dollar itself," calling this idea "absurd" and warning that this stability will fade as the dollar continues to weaken.
He remains firm in his belief that gold, not Bitcoin or stablecoins, is the true store of value.
Trump's Push for Cryptocurrency: Bold or Reckless?
Along with new bills, Trump is also pushing for an executive order allowing 401(k) retirement investments in Bitcoin and cryptocurrency.
Schiff sees this as a dangerous move that could accelerate the decline of the dollar.
"Bitcoin players may rejoice, as most buy Bitcoin to profit from the collapse of the dollar. But ironically, gold will be the winner – Bitcoin will also collapse," he said.
How Will This Play Out?
Schiff's warnings raise serious questions about the direction of the US with its new pro-cryptocurrency stance. While many view these bills as a step forward, critics like Schiff argue that they could backfire, harming the economy more than helping.
As cryptocurrency regulations are gradually being formed, the debate is far from over: do these bills lay the groundwork for a digital future or open the door to financial trouble?