Peter Schiff slams USD stablecoins as “flawed” for tying to a weakening dollar, as GENIUS Act nears final vote to regulate them.
Peter Schiff, a prominent economist, has called USD stablecoins “flawed” for their link to a depreciating U.S. dollar as the GENIUS Stablecoin Act moves toward a House vote.
President Donald Trump has pushed for rapid passage, promising immediate approval to cement U.S. leadership in digital assets. Schiff, however, argues that USD stablecoins are undermined by the dollar’s declining value and advocates for gold-backed stablecoins, which he views as a better store of value with comparable liquidity. On X, he wrote,
“I get Bitcoin, but not U.S. dollar stablecoins. If you’re going to introduce a third party custodian, why settle for a token backed by a flawed fiat currency like the dollar, when you can own one backed by gold?”
Fred Krueger Predicts USD Stablecoins Surge, Rebuts Schiff
Bitcoin investor Fred Krueger counters Schiff, forecasting that the GENIUS Act’s regulatory framework will spur widespread stablecoin adoption. He predicts major e-commerce platforms, starting with Amazon, will accept stablecoins within a year, citing Shopify’s recent partnership with Coinbase and Stripe for stablecoin payments.
Krueger attributes this shift to the Act’s measures, including AML/KYC compliance, consumer protections, adoption incentives, and advantages for cross-border transactions. He likens the potential impact to the 1999 dot-com boom, envisioning a transformative crypto economy.
