- Peter Schiff criticizes Trump’s pro-crypto stance.
- Bitcoin labeled a “Ponzi scheme” by Schiff.
- Market sees temporary decline post-legislation.
In a recent statement, Peter Schiff condemned Donald Trump’s endorsement of three crypto bills. Schiff labeled Bitcoin a “Ponzi scheme,” continuing his long-standing skepticism of digital currencies.
Donald Trump’s Crypto Legislation
Donald Trump signed the GENIUS Act, CLARITY Act, and an anti-CBDC bill, positioning the U.S. as more crypto-friendly. Peter Schiff, a long-time critic, voiced stark opposition. He described Bitcoin as a “decentralized Ponzi scheme” and questioned the stability of recent crypto legislation.
Schiff’s statements sparked reactions from both traditional finance and crypto advocates. Mike Novogratz, CEO of Galaxy Digital, challenged Schiff, suggesting he has been mistaken for years. Schiff maintains digital assets offer speculative risk to average investors.
The market felt the impact immediately, with Bitcoin dropping 2% and altcoins like Ethereum and Solana following suit. Schiff argues this reflects hype over substance, though no definitive data supports a direct cause and effect.
“Bitcoin is a decentralized Ponzi scheme.” — Peter Schiff, Economist and Gold Advocate
This division reflects broader skepticism within traditional finance about crypto laws’ effectiveness in promoting genuine economic stability. The passage of these bills is seen as a milestone by supporters, but critics like Schiff question long-term impacts.
Regulatory changes could spur shifts in institutional engagement but their exact effects remain uncertain. Observers are monitoring market responses for indications of the bills’ broader implications. The industry’s trajectory may still be defined by legislative acceptance and investor sentiment.
