U.S. Politicians’ Change of Position Not Good for Bitcoin: Samson Mow

Joe Biden’s government has recently sent signals that it is making a 180-degree turn in its policy on the bitcoin (BTC) industry and other cryptocurrencies. This is something that many in the digital asset community applaud, but that others do not believe is so positive, as bitcoin entrepreneur Samson Mow lets us know.

For the leader of Jan3, a company that promotes hyperbitcoinization, the way things are happening in the United States, They can be detrimental to Bitcoin.

“I am not optimistic about politicians becoming pro-crypto.” It may seem nice given previous hostile anti-cryptocurrency stances, but in the long run it is bad for Bitcoin. Without a strong Bitcoin ethos, this change only paves the way for the next FTX/Luna/Genesis, and once again, we will pay for it.”

Samson Mow, CEO of Jan3.

Mow is concerned that politicians express their support for the entire cryptocurrency ecosystem and not exclusively for Bitcoin. In fact, he left the comment in reaction to a message in which US Senator Cynthia Lummis notes her optimism about the future of cryptocurrencies in the United States.

What Lummis is referring to is the fact that last week the House of Representatives of Congress approved the Financial Innovation and Technology for the 21st Century (FIT21) bill. That step became an event because it is the first time that A proposal to regulate the cryptocurrency sector is advancing in Congress.

That same week, the Lower House approved a bill that prevents the country’s Federal Reserve (Fed) from issuing a central bank digital currency (CBDC) without first obtaining approval from the US Congress.

Additionally, the government of Joe Biden did not express his intention to veto on the approved combo of laws, which, as a whole, was applauded and interpreted as an important step for the cryptocurrency ecosystem.

However, for Samson Mow, the 180-degree turn that the United States is taking is cautionary. He refers especially to the collapse of FTX, which became one of the largest cryptocurrency exchanges in the world. Behind him there was a whole network of mega political donations and regulators that They allowed their team to operate irregularly without raising red flags that something was wrong.

For this reason, Mow warns that as long as politicians are supporting cryptocurrencies, it is necessary to be vigilant because more failed projects may be yet to come, as also happened with the Terra Luna case.

Apart from politicians supporting any cryptocurrency project that emerges in the ecosystem, there is the adoption of bitcoin by States, something that Mow usually supports, since it is the digital currency that stands out from the rest, to the point of imposing its own standard, which he calls hyperbitcoinization, which will occur when bitcoin becomes the world’s reserve currency.

That is why Jan3 believes that it is necessary for politicians to educate themselves about bitcoin before they hold positions of power. In this way, soon More countries will follow in the footsteps of El Salvador, the first country in the world to give legal tender to the pioneering digital currency.