Peter Schiff says bitcoin's rally after the SEC cleared the way for tokenized stock trading doesn't add up, arguing the move gives investors a rival place to park liquidity. Crypto holders pushed back, calling bitcoin a distinct form of digital collateral rather than a competitor to tokenized shares.
Peter Schiff, chief economist and global strategist at Europac, says bitcoin's latest rally makes no sense given what triggered it. The Securities and Exchange Commission's decision to let tokenized securities trade on public blockchains is, in his view, a new drain on the liquidity bitcoin needs to keep climbing.
Schiff calls the bitcoin rally backwards
According to Schiff, the SEC's tokenized stock announcement doesn't justify bitcoin's gains: "Yesterday's big Bitcoin rally following the SEC's tokenized stock announcement makes no sense", he wrote on social media. He argued that lowering the barrier to onchain stock ownership is a net negative for bitcoin, since it now has to compete with tokenized shares for the same pool of investor money.
A gold bug's case for tokenized equity
Schiff, a longtime gold advocate, said digital tokens representing shares in profitable, dividend-paying companies make a more dependable store of value than an asset with no underlying backing. He added that wallet holders will soon be able to pick tokenized stocks over bitcoin, giving the cryptocurrency yet another rival for the same capital.
Crypto holders reject the comparison
Schiff's take drew criticism from crypto holders, who argued bitcoin works as digital collateral distinct from tokenized equities, gold, or treasuries, and as an asset underpinning the broader digital economy. Schiff pressed on regardless, dismissing bitcoin as a collapsing scheme with no real backing and arguing tokenized stocks offer the same portfolio choice without bitcoin's ownership risks.
The SEC's move follows the failure of the Digital Asset Market Clarity Act to gather enough votes for a full Senate vote, pushing regulatory agencies to set the pace on crypto policy themselves.
Source: Bitcoin News
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