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Former Blockstream chief strategy officer Samson Mow believes Bitcoin’s newfound political support could weaken its foundational principles and increase the risk of future disruptions that could harm users.
“I’m not optimistic about politicians becoming pro-‘crypto’. It may feel good given their hostile anti-crypto stance so far, but it’s bad for Bitcoin in the long run,” Mow said in a recent post on X.
According to Mow, political involvement could undermine Bitcoin’s strength. He noted that a change in stance could lead to an FTX/Luna-like collapse, ultimately damaging the entire ecosystem.
“Without a strong spirit for Bitcoin, this change will only pave the way for the next FTX/Luna/Genesis and we will pay the price again,” he added.
Mow's comments came in response to a post by Senator Cynthia Lummis, who is known as a champion for the future of cryptocurrencies in the United States.
Mow didn't disagree that Lammis is one of the most staunchly pro-Bitcoin politicians. However, he disagreed with Lammis's lumping Bitcoin together with other crypto assets. He said that many people, including pro-Bitcoin politicians, may not understand the difference between Bitcoin and other crypto assets.
Cryptocurrencies have become increasingly influential in U.S. politics in recent years, with industry groups investing heavily in lobbying and campaign finances to shape regulation and elect sympathetic representatives.
Over the past two weeks, the U.S. Congress has voted on three crypto-related bills, including HJRes. 109, a bill that seeks to overturn the SEC's cryptocurrency rule SAB 121; FIT21, a bill created to establish a regime to regulate the U.S. cryptocurrency market; and the Anti-CBDC Surveillance Act, a bill aimed at blocking the Federal Reserve from issuing a central bank digital currency (CBDC).
The most notable development is the Biden Administration's softening of its stance on cryptocurrencies. Instead of threatening to veto FIT21 as the White House did with HJRes. 109, the Biden Administration merely expressed concerns about the lack of investor protections.
Some experts and industry players have suggested that the recent approval of a spot Ethereum exchange-traded fund (ETF) listing in the United States may have been partly influenced by political considerations.
They speculate that the SEC's decision may have been influenced by potential pressure from the Biden administration, which has long been criticized for its stance on cryptocurrency regulation.
Observers believe these moves are part of a strategy to win votes in the upcoming presidential election, especially since Biden's main rival, Donald Trump, has publicly touted making the U.S. a cryptocurrency leader. Trump also aims to end hostility toward the industry.
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