Peter Schiff Calls Bitcoin Worthless After CLARITY Act Senate Setback
Bitcoin critic Peter Schiff renewed his criticism of the cryptocurrency after the U.S. Senate failed to advance the CLARITY Act, saying Congress does not need legislation to determine Bitcoin’s value because its lack of worth is, in his view, “very clear.”
Schiff made the comment on X in response to investor Anthony Pompliano, using the Senate’s setback on digital asset legislation to reinforce his longstanding position that Bitcoin lacks lasting monetary value.
The remarks came after the Senate’s Sept. 15 procedural vote on the CLARITY Act. The measure failed to secure the 60 votes required to advance, with the Senate recording 49 votes in favor and 50 against. The vote was on advancing the legislation rather than final passage of the bill.
The legislation was intended to establish a broader federal framework for digital assets and clarify responsibilities between the Securities and Exchange Commission and Commodity Futures Trading Commission.
CLARITY Act Defeat Highlights Crypto Industry Divisions
The Senate setback has produced differing reactions among prominent figures in the cryptocurrency industry and its critics.
Galaxy Digital CEO Mike Novogratz expressed frustration following the vote, pointing to the lengthy negotiations that preceded the Senate action. Coinbase CEO Brian Armstrong also described the outcome as disappointing but indicated that bipartisan negotiations could potentially continue.
Armstrong separately argued that the cryptocurrency industry should not rely entirely on Congress for regulatory clarity. He said the SEC and CFTC already have authority that could be used to establish clearer rules for digital assets.
Binance co-founder Changpeng Zhao took a different view of the outcome, identifying the continuation of stablecoin yields as a potential benefit.
Outside the industry, Representative Brad Sherman welcomed the Senate result and reiterated his opposition to the CLARITY Act and earlier versions of the legislation. Investor Ross Gerber also characterized the vote negatively for Bitcoin.
The contrasting responses reflect a broader disagreement over both Bitcoin itself and the regulatory approach for the wider digital asset sector.
Senate Vote Leaves Digital Asset Regulation Unresolved
The CLARITY Act had gone through more than a year of negotiations before reaching the Senate vote. Supporters sought a defined federal framework for digital assets, while opposition remained focused on provisions including ethics requirements and other unresolved policy issues.
The Sept. 15 vote did not constitute a final rejection of the bill’s text. It was a procedural vote on whether the Senate could proceed to consideration, and the motion failed to reach the 60-vote cloture threshold.
The result leaves the cryptocurrency industry without the comprehensive federal market-structure framework sought through the legislation. At the same time, industry executives have pointed to existing regulatory authorities as another possible route for developing clearer rules.
Schiff’s comments frame the legislative setback as further support for his long-running criticism of Bitcoin, while industry leaders have focused instead on the unresolved regulatory questions facing digital asset companies.
Writer: Marcus RenfieldCrypto Market Analyst & Onchain WriterMarcus Renfield covers cryptocurrency markets with a focus on onchain data, Bitcoin price action, and emerging market narratives. His writing examines how capital flows, network activity, and broader market structure influence short- and medium-term trends.He aims to provide clear, data-informed analysis for readers seeking a deeper understanding of crypto market dynamics.