Zinger Key Points
- Peter Schiff urged Trump not to use taxpayer money to stockpile crypto, even if it becomes a dominant industry.
- He also warned media outlets against misleading the public by suggesting a strategic reserve has already been established.
- Our government trade tracker caught Pelosi’s 169% AI winner. Discover how to track all 535 Congress member stock trades today.
Renowned Bitcoin BTC/USD skeptic Peter Schiff has weighed in on Donald Trump's announcement regarding a potential crypto strategic reserve, voicing concerns over government involvement in the market.
What Happened: Schiff retweeted an X post from Feb. 26, where he stated that the “only thing that can delay a Bitcoin meltdown is Trump.”
He had suggested that strong government support—such as a strategic Bitcoin reserve funded by large purchases—could temporarily push prices higher.
Referencing the announcement of a crypto reserve, Schiff referred to his earlier take, saying that “without Trump forcing U.S. taxpayers to buy Bitcoin and other worthless crypto tokens, the entire crypto market would collapse.”
Schiff argued that a government-backed crypto reserve would ultimately be counterproductive.
While large-scale purchases might provide short-term price stability, he warns that once the buying stops, the market would likely resume its decline. Worse, if the government ever liquidates its holdings, it could trigger a massive crash.
While Schiff acknowledges that Trump may view crypto as an important industry, he insists that taxpayer funds should not be used to "subsidize" it.
He believes markets—not governments—should determine winners and losers, arguing that history has shown central planning to be ineffective
Why It Matters: In a CNBC interview in December, GOP Senator Cynthia Lummis (R-Wyo.) countered concerns about taxpayer funding, stating that the U.S. government would not need to print new money to establish a strategic reserve.
She pointed out that the government already holds over 200,000 BTC from asset forfeitures. Additionally, reserves at the 12 Federal Reserve Banks—including gold certificates—could be converted at fair market value and sold into Bitcoin
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