The U.S. Senate passed the GENIUS Act on June 17, 2025, establishing new regulations for stablecoins with a market value of approximately $260 billion. Three days later, gold bull Peter Schiff posted on X, questioning the credibility of USD stablecoins and claiming he would issue a gold-backed token, reigniting the "anchored asset" debate.
On June 20, Schiff stated on X that while he understands Bitcoin, he cannot comprehend USD stablecoins, pointing out that the U.S. dollar has inherent inflation and deficit issues, making it unsuitable as collateral. In an interview, he further explained that despite existing products like XAUT and PAXG, he still plans to launch his own gold token, with the blockchain, name, and timeline yet to be announced. Schiff candidly stated that if third-party custody is necessary, gold is more reliable than the U.S. dollar:
I understand Bitcoin, but not USD stablecoins. If trust is required, trust gold instead.
If you must introduce a third-party custodian, why settle for tokens backed by flawed fiat currencies like the U.S. dollar when you can have tokens backed by gold? You can obtain the same liquidity, but you'll also gain a true store of value.
Maintaining the Crypto Antagonist Stance
Netizens heavily criticized his remarks, believing Schiff's recent statements are irrational and inconsistent with his previous Bitcoin-bearish comments. One user sarcastically asked, "Oh my, are you saying something bullish about Bitcoin?" to which Schiff responded:
No, I just said I understand it, not that I agree with what others like about it.Understanding it is precisely why I don't own BTC.
Meanwhile, netizens encouraged him to use gold-backed stablecoins, and Schiff replied:
They already exist, but I'm going to launch my own.
When a netizen mentioned the current liquidity advantages of stablecoins, Schiff dismissed it:
You can do the same thing with gold-backed tokens. If you want to transact in U.S. dollars, there are many simple ways to do so without blockchain tokens.
