June 16, 2024
1 Solar System Way, Planet Earth, USA
Crypto

Political support is bad for Bitcoin in the long term: Samson Mow

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Former Blockstream chief strategy officer Samson Mow believes that new political support for Bitcoin could weaken its fundamentals and increase the risk of future failures that could harm users.

“I'm not optimistic about politicians becoming pro-crypto. It may seem nice given past hostile anti-crypto stances, but in the long run it's bad for Bitcoin,” Mow said. fixed in a recent post on X.

According to Mow, political involvement potentially compromises Bitcoin's strength. He noted that the change in stance could lead to crashes similar to those of FTX or Luna and ultimately damage the entire ecosystem.

“Without a strong Bitcoin ethos, this change only paves the way for the next FTX/Luna/Genesis, and once again, we will pay for it,” he added.

Mow's comments follow a post by Senator Cynthia Lummis, a well-known advocate for the future of cryptocurrencies in the US.

Mow did not object to the fact that Lummis is one of the most genuine pro-Bitcoin politicians. However, he did not agree with Lummis grouping Bitcoin with other crypto assets. He saying that many people, including politicians who are becoming pro-Bitcoin, might not understand the difference between Bitcoin and other crypto assets.

Cryptocurrencies have become an increasingly influential factor in American politics in recent years, with industry entities investing heavily in lobbying and campaign contributions to shape regulations and elect sympathetic representatives.

Over the past two weeks, US lawmakers have voted on three cryptocurrency-related bills, including HJRes. 109, a bill that seeks repeal SEC crypto rule SAB 121FIT21, a bill created to establish a regime to regulate US crypto marketsand the State CBDC Anti-Surveillance Law, legislation that aims prevent the Federal Reserve to issue a central bank digital currency (CBDC).

The most notable development is that the Biden administration has softened its stance towards cryptocurrencies. Instead of threatening a veto FIT21, which the White House did with HJRes. 109, alone concerns expressed about the lack of investor protection.

Some experts and industry figures suggest that the recent Ethereum Spot ETF Listing Approval (ETFs) in the US can be influenced in part by political considerations.

They speculate that the decision of the United States Securities and Exchange Commission (SEC) could have been shocked due to possible pressure from the Biden administration, which has long faced criticism for its stance on cryptocurrency regulation.

Observers believe these measures are part of a strategy to win votes in the upcoming presidential election, especially since Donald Trump, Biden's biggest competitor, has publicly expressed advocated making the United States a crypto leader. Trump also intends end hostility towards the industry.

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