Peter Schiff Doubles Down: Bitcoin is a Ponzi Scheme & Crypto Bills Are a Farce
Gold bug turned crypto critic Peter Schiff just fired another salvo at digital assets—calling Bitcoin a 'Ponzi scheme' and slamming proposed crypto regulations as political theater.
Schiff's latest rant comes as lawmakers scramble to appear 'tech-savvy' while understanding exactly zero about decentralized finance. Classic Washington.
The irony? Schiff's been wrong about Bitcoin for 15 years straight—yet still gets prime airtime. Meanwhile, BTC's market cap just hit $1.5 trillion. But sure, keep calling it a scam.
At this point, Schiff's anti-crypto crusade feels less like financial advice and more like performance art for gold ETFs. The man wouldn't recognize a blockchain if it mined his precious metals.
TLDR
- Peter Schiff criticized the newly signed crypto bills and called Bitcoin a decentralized Ponzi scheme.
- The U.S. President signed the GENIUS Act, CLARITY Act, and anti-CBDC bill into law.
- Schiff claimed the new laws aim to pump crypto prices and help insiders exit at higher valuations.
- Bitcoin fell by 2 percent following the bill signings which marked a sell-the-news event.
- Schiff warned that promoting Bitcoin in retirement plans could accelerate the fall of the U.S. dollar.
The recent signing of three crypto-focused bills has triggered criticism from economist Peter Schiff and modest losses in the market. U.S. President Donald Trump signed the GENIUS Act, CLARITY Act, and anti-CBDC bill into law on Friday. While the crypto community welcomed the move, Schiff labeled the legislation as a tactic to inflate digital asset prices.
Peter Schiff rejected claims that these bills WOULD strengthen the financial system or support innovation in digital currencies. Instead, he argued they serve as tools to legitimize Bitcoin, which he views as fundamentally flawed. Schiff said these efforts would eventually backfire and further undermine the U.S. dollar’s long-term stability.
Though the market initially reacted positively, Bitcoin and major altcoins faced a sharp pullback following the announcement. Schiff emphasized that this market dip signaled a “sell-the-news” reaction, not sustainable strength. He said insiders benefited from the hype as retail buyers took on greater risk.
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
Bitcoin Pulls Back After Mega Rally as Peter Schiff Criticizes Legislation
Bitcoin price declined 2% on the day the legislation passed, halting a strong rally seen earlier in the week. Peter Schiff attributed this drop to speculative HYPE fueled by lawmakers and said such moves weaken trust in monetary policy. He also warned that promoting Bitcoin through law would not shield investors from its volatility.
Despite President Trump’s new executive order hinting at Bitcoin-friendly retirement plans, Schiff rejected the notion that it helps long-term savers. He said encouraging crypto exposure in 401(k) accounts might accelerate financial instability across households. Schiff reiterated that Bitcoin lacks intrinsic value and called it a “decentralized Ponzi scheme.”
Several lawmakers touted the GENIUS Act as a path to financial freedom, but Schiff said it misguides both investors and institutions. He asserted that cryptocurrencies, led by Bitcoin, create illusions of wealth rather than actual stability. Schiff remains convinced that the U.S. is risking economic credibility by elevating digital assets.
Peter Schiff criticized the argument that USD-pegged stablecoins would enhance global trust in the dollar. He said such assets are only as reliable as the fiat currency backing them. As the dollar continues to weaken, Schiff believes stablecoins will lose both credibility and value.
