Peter Schiff Slams Texas For Authorizing Bitcoin Reserve: 'Another Example Of Why The Founding Fathers Distrusted Democracy'

Financial commentator Peter Schiff slammed Texas’ move to establish a Bitcoin (CRYPTO: BTC) reserve funded by the state treasury.

What Happened: Schiff took to X on Monday, voicing concerns about the legislative clearance given in the “Lone Star State” to use public funds to buy the apex cryptocurrency.

“Texas buying Bitcoin is yet another example of why the Founding Fathers distrusted democracy,” he said.

Schiff noted that wealthy Bitcoin investors, often known as whales, are buying off lawmakers to push such cryptocurrency-friendly measures and get political backing in exchange, all “at the expense of taxpayers” who fund the purchases.

See Also: Million Dollar Listing Seller Turned Down 50,000 Bitcoin For $14 Million New York Apartment In 2015, Missed Out On Billions

Why It Matters: Schiff’s remarks come after the Texas Strategic Bitcoin Reserve Act was signed into law by Governor Greg Abbott last week, making Texas the third state, after New Hampshire and Arizona, to authorize such a reserve.

Texas has already allocated $10 million for the purchase of the leading cryptocurrency, meant to be funded from the state treasury pool, according to a report by CoinDesk. The bill mandates that only assets having a minimum market capitalization of $500 billion over a 24-month period would be eligible for inclusion in the reserve. Currently, only Bitcoin fits the bill.

Schiff’s criticism of Texas’s Bitcoin reserve is not surprising given his public opposition to anything associated with the apex cryptocurrency.

He previously warned that the strategic national Bitcoin reserve is a tool to trick Americans into speculative losses and that any government-backed crypto reserve would ultimately turn counterproductive.

Price Action:  At the time of writing, BTC was exchanging hands at $105,102.68, up 3.23% in the last 24 hours, according to data from Benzinga Pro.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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