Economist and gold bug Peter Schiff has predicted that U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler “will soon introduce new onerous crypto regulations” that will result in “a sharp decline” in the price of bitcoin. Schiff expects the new regulations to focus on anti-money laundering (AML) rather than securities law.
Peter Schiff’s Crypto Predictions: Onerous Regulations, Sharp Bitcoin Price Decline
Economist and gold bug Peter Schiff, a vocal bitcoin skeptic, has shared his predictions on crypto regulations and BTC’s price outlook following the U.S. Securities and Exchange Commission (SEC)’s approval of spot bitcoin exchange-traded funds (ETFs). He wrote on social media platform X Tuesday:
Since Gary Gensler was backed into a corner on spot bitcoin ETF approval, I think he will soon introduce new onerous crypto regulations that will substantially increase the cost of Bitcoin transactions, further undermining its ‘use’ case, resulting in a sharp decline in price.
Gensler previously stated that most crypto tokens, other than bitcoin, are securities. Noting that the SEC chairman “may even change his mind on bitcoin,” Schiff stressed in a follow-up post: “My thought is that new regulations will relate to AML, not securities law.”
Many users on X replied to Schiff’s posts to express their opinions. One emphasized, “I wouldn’t call Gensler being required to stay lawful ‘being backed into a corner.’” Others questioned how Gensler could possibly raise Bitcoin transaction costs. “Gary Gensler controls the Bitcoin mempool?” one wrote. Another user opined: “How can Gary and the SEC increase the cost of Bitcoin transactions? Are they gonna spend a lot of money on bidding for block space?”
Several users highlighted Gensler’s past statements on bitcoin as a commodity. One mentioned:
Gary Gensler has repeatedly stated that bitcoin is a commodity. It will be hard for him at the SEC to regulate, even the on ramps and off ramps (unless those on ramps and off ramps deal in unregistered securities).
“SEC enforces securities laws and protects investors in securities,” the same user noted, adding that anti-money laundering (AML) regulations are covered more broadly by other agencies, such as the Financial Crimes Enforcement Network (FinCEN).
What do you think about Peter Schiff’s predictions regarding Gary Gensler introducing onerous crypto regulations that will sink the price of bitcoin? Let us know in the comments section below.