Peter Schiff's Sharp Criticism: Bitcoin 'Valueless' After Clarity Act Failure

The U.S. Senate did not move the Clarity Act to debate stage, halting cryptocurrency industry efforts to establish regulatory legislation. According to blockchain media U.Today, the Senate failed to secure the necessary 60 votes on Thursday, with all Democratic senators voting against it.

Economist Peter Schiff, a gold advocate and prominent Bitcoin critic, seized on the outcome to reiterate his stance that Bitcoin is 'valueless,' countering Anthony Pompliano's optimism. He argued no legislative action by Congress was needed.

The industry expressed disappointment. Galaxy Digital CEO Mike Novogratz called it a disappointing result after nearly 18 months of negotiations, suggesting the upcoming election influenced lawmakers' decisions and that remaining differences couldn't be resolved. He described feeling as if 'the government is broken.'

Coinbase CEO Brian Armstrong also deemed the Senate vote disappointing but did not view it as a permanent defeat. He suggested continued bipartisan efforts could lead to renewed legislative action.

Armstrong added that the crypto industry should no longer rely solely on Congress for regulatory strategy, noting that the SEC and CFTC already possess sufficient authority to establish clearer cryptocurrency rules.

Binance co-founder Changpeng Zhao offered a relatively optimistic take, highlighting stablecoins' continued profitability as a positive sign.

Meanwhile, crypto skeptics celebrated the vote. Representative Brad Sherman, who opposed the Clarity Act and previous versions from the start, expressed satisfaction with the Senate majority's opposition. Recent Bitcoin skeptic investor Ross Gerber also labeled the outcome another failure for Bitcoin.