Peter Schiff is once again criticizing Bitcoin, saying rich crypto investors paid off members of Congress to get their way.
In a post on X, Schiff wrote: “Power corrupts. And in Congress, money buys it. There’s no better display than crypto week, where Bitcoin whales paid off key members to dress their digital pyramid scheme in a cloak of legitimacy, to further exploit the public’s greed and ignorance for their personal gain.”
GENIUS Act Passes With Trump’s Support
His comments came just as Congress passed the first major standalone crypto legislation in U.S. history: the GENIUS Act, which sets federal rules for stablecoins, a form of cryptocurrency backed 1-to-1 by reserves like U.S. dollars.
The bill passed the House on July 17 with a 308-122 vote and had already cleared the Senate. It now awaits President Donald Trump’s signature.
Trump, a vocal supporter of cryptocurrency, helped push the bill through by pressuring holdout Republican lawmakers. His family also has financial ties to a stablecoin company.
“Advancement of this bill to President Trump’s desk marks a historic milestone for crypto entrepreneurs, financial market participants, and everyday Americans,” Securities and Exchange Commission Chairman Paul Atkins said in a statement.
Crypto Industry Celebrates, Critics Push Back
Crypto supporters online quickly fired back at Schiff. One person wrote, “larryfink came around but@PeterSchiff about to die his way to the grave being wrong,” referring to BlackRock CEO Larry Fink’s embrace of crypto.
Schiff replied, “Fink sold out for the money. Typical on Wall Street, unfortunately.”
Critics of the bill, like Corey Frayer of the Consumer Federation of America, argue the crypto industry essentially bought the legislation.
“This is what political power can buy you,” Frayer told NPR, warning that the bill gives crypto companies a “veil of regulation” without requiring them to meet the same standards as traditional financial institutions.
The GENIUS Act formalizes how stablecoins are regulated, requiring issuers to hold dollar-for-dollar reserves and comply with anti-money laundering rules.
Stablecoins are a type of cryptocurrency designed to have a fixed value, usually tied to a traditional currency like the U.S. dollar.
This means if you hold $100 in stablecoins, the issuing company should have $100 in cash or other liquid assets set aside to back it up.
However, it also allows non-bank companies to issue stablecoins, which has drawn concern.
Despite the backlash, major players like JPMorgan Chase, Amazon, and Walmart are reportedly considering launching their own stablecoins to cut down on payment processing costs.
Crypto advocates say stablecoins will revolutionize how money moves globally, removing costly middlemen.
Skeptics like Schiff argue it’s just another scheme favoring the wealthy, where early investors and big financial players profit the most while everyday users face the biggest risks.
They say the crypto world is being shaped by the same forces that have long driven inequality in traditional finance.
The debate over how, and whether, to regulate crypto is far from over. Some lawmakers want tougher oversight to protect consumers and prevent money laundering, while others warn that strict rules could push innovation and investment overseas.
With multiple agencies trying to stake their claim on crypto oversight, there is growing confusion about who is in charge.
More bills are expected soon. One would define which federal regulators have authority over different parts of the crypto market.
Another would block the creation of a digital U.S. dollar, which some see as a tool for financial modernization but others fear could result in too much government control over personal spending.
IMAGE CREDIT: “Peter Schiff” by Gage Skidmore, via Flickr. Licensed under CC BY-SA 2.0. Image adjusted for layout.