TLDR
- Peter Schiff calls recent crypto bills tools to hype Bitcoin, questioning their legitimacy and long-term stability.
Schiff warns that stablecoins, tied to the declining U.S. dollar, will lose reliability as the dollar weakens.
The GENIUS, CLARITY, and anti-CBDC Acts aim to regulate digital assets, but Schiff sees them as fueling Bitcoin’s speculative rise.
Schiff believes Bitcoin’s promotion will accelerate the decline of the U.S. dollar, with gold remaining the true store of value.
Peter Schiff, a vocal critic of Bitcoin, has expressed strong disapproval of the recent signing of three significant crypto-related bills: the GENIUS Act, the CLARITY Act, and the anti-CBDC Act. The bills, which were signed into law by U.S. President Donald Trump, have generated mixed reactions within the crypto community.
While many consider the legislation a pivotal moment for the industry, Schiff believes that the bills primarily serve to inflate the legitimacy of Bitcoin, which he describes as a “decentralized Ponzi scheme.”
Crypto Bills and Bitcoin Legitimacy
Schiff argues that the introduction of these crypto bills is a calculated move to promote Bitcoin and other digital assets. He claims that the bills will artificially legitimize Bitcoin, thus driving up its value, with insiders potentially benefiting from the resulting price surge. Schiff sees the bills as tools aimed at hyping Bitcoin, which he believes will lead to further instability in the market.
The GENIUS Act, CLARITY Act, and anti-CBDC laws all seek to provide clearer regulatory frameworks for digital assets and stablecoins.
The main purpose of the "landmark" crypto bills is to cloak Bitcoin—nothing more than a decentralized Ponzi scheme—in the trappings of legitimacy. 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.
— Peter Schiff (@PeterSchiff) July 18, 2025
However, Schiff dismisses these efforts, viewing them as part of a broader narrative designed to inflate Bitcoin’s value at the expense of the U.S. dollar. In his view, the promotion of Bitcoin is a temporary solution that will eventually lead to its downfall, just as he believes the U.S. dollar is on a declining path.
Stablecoins and Dollar Pegging
A key component of the legislation is the regulation of stablecoins, which are digital currencies pegged to the U.S. dollar. Some proponents, including industry veterans, have suggested that stablecoins will solidify the dollar’s dominance in the global market.
However, Schiff disagrees with this view. He asserts that stablecoins, being tied to the dollar, will only be as stable as the dollar itself. According to Schiff, as the value of the dollar continues to decrease, stablecoins will inevitably lose their reliability.
Schiff’s skepticism about stablecoins extends beyond their potential to stabilize the crypto market. He believes that stablecoin issuers will not be able to maintain a 100% reserve ratio, thus undermining their promise of stability. This criticism aligns with Schiff’s broader stance that digital assets, including Bitcoin, are inherently flawed and vulnerable to systemic collapse.
Bitcoin and the U.S. Dollar
Peter Schiff has long been an advocate for gold as the ultimate store of value, and he continues to express concerns over the promotion of Bitcoin as a safe-haven asset. He views Bitcoin as a speculative investment rather than a genuine currency or store of value. In his critique of the Trump administration’s pro-Bitcoin stance, Schiff argues that promoting Bitcoin through these new laws will accelerate the decline of the U.S. dollar.
He also points to the potential for Bitcoin to lose value as the market becomes saturated with digital assets and speculative investments. Schiff’s comments suggest that Bitcoin’s appeal is largely driven by the expectation of a collapse in traditional financial systems. However, he maintains that gold will emerge as the true winner in this scenario, as he expects Bitcoin to experience significant volatility and eventual failure.
Schiff’s Longstanding Criticism of Bitcoin
Peter Schiff has been a longstanding critic of Bitcoin, often calling it a “bubble” and a “Ponzi scheme.” He has argued that Bitcoin’s lack of intrinsic value makes it a risky investment, and he contends that it is merely a speculative asset driven by hype and market manipulation. Despite the continued growth of the cryptocurrency market, Schiff remains steadfast in his belief that gold is the only true store of value.
While the signing of the crypto bills has been seen as a major step toward regulatory clarity, Schiff’s remarks highlight the ongoing debate over the future of digital currencies. Whether these laws will ultimately benefit the cryptocurrency market or fuel further speculation remains to be seen. Nonetheless, Schiff’s criticism underscores the broader concerns about the role of regulation in shaping the future of digital assets.
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