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Former Blockstream Chief Strategy Officer Samson Mow believes that the newfound political support for Bitcoin could weaken its core principles and increase the risk of future failures that could harm users.
“I’m not bullish on politicians becoming pro “crypto.” It may feel nice given the prior hostile anti-crypto stances, but long term it’s bad for Bitcoin,” Mow stated in a recent post on X.
According to Mow, political involvement potentially compromises Bitcoin’s strength. He pointed out that the shift in stance could lead to similar collapses like FTX or Luna and ultimately harm the entire ecosystem.
“Without a strong Bitcoin ethos, this shift only paves the way for the next FTX/Luna/Genesis, & once again, we will pay for it,” he added.
Mow’s comments follow a post by Senator Cynthia Lummis, a known advocate for crypto’s future in the US.
Mow didn’t oppose the fact that Lummis is one of the most genuine pro-Bitcoin politicians. However, he disagreed with Lummis grouping Bitcoin with other crypto assets. He said that many people, including politicians who are becoming pro-Bitcoin, might not understand the difference between Bitcoin and other crypto assets.
Crypto has become an increasingly influential factor in US 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 crypto-related bills, including H.J.Res. 109, a bill seeking to overturn SEC’s crypto rule SAB 121, FIT21, a bill created to establish a regime to regulate US crypto markets, and the CBDC Anti-Surveillance State Act, a legislation aiming to prevent the Federal Reserve from issuing a central bank digital currency (CBDC).
The most remarkable development is that the Biden administration has softened its stance toward crypto. Instead of threatening a veto of FIT21, which the White House did with H.J.Res. 109, it only voiced concerns about the lack of investor protection.
Some experts and industry figures suggest that the recent listing approval of spot Ethereum exchange-traded funds (ETFs) in the US may be partly influenced by political considerations.
They speculate that the US Securities and Exchange Commission’s (SEC) decision might have been impacted by potential pressure from the Biden administration, which has long faced criticism for its stance on crypto regulation.
Observers believe these moves are part of a strategy to win votes in the upcoming presidential election, especially since Donald Trump, Biden’s biggest competitor, has publicly advocated making the US a crypto leader. Trump also aims to end hostility toward the industry.
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