There could be a direct attack on bitcoin, warned Balaji Srinivasan, a millionaire entrepreneur who was once a top executive at Coinbase. According to the executive branch, regulators are not acting against brokers in the US for nothing.
In recent days, at least two exchanges have come under the radar of regulators, namely the platforms Binance and Coinbase. Both US brokerage divisions have received lawsuits from the SEC, the country’s CVM.
With the case, many are pointing out that the attack on the cryptocurrency market has just begun and could have serious consequences for the future. However, the authorities mentioned some cryptocurrencies during the process and among them it was noted that they all work with POS algorithms.
That is, it is not initially clear that bitcoin may have implications as the technology does not carry any securities. Still, part of the market is concerned that the largest coin could experience more turmoil.
Reminding that the “man who created the SEC was the same one who seized the gold,” Balaji says the attack on bitcoin is coming
In the 1930s, after the Great Depression of 1929, then US President Franklin D. Roosevelt announced that the population would have to surrender all its gold in exchange for dollars.
The confiscation of gold in the US took place in 1933 and was carried out by the federal government, more specifically by President Roosevelt, through Executive Order 6102.
A year after President Roosevelt confiscated all of the population’s gold, a measure to bolster US reserves, he announced the SEC, which was created in 1934 as a result of the Securities Act. And this creation also took place as a measure to get out of the “Great Depression”, which shook the world.
But the short history of the 1930s has serious implications for the future, according to Balaji, a cryptocurrency entrepreneur and former Coinbase executive. In a public outburst, via Twitter, he stated that all indications are that the attack on bitcoin is coming.
“The same man who created the Securities and Exchange Commission also ordered the confiscation of gold. So yes. The Bitcoin attack is coming.”
The same man who founded the Securities and Exchange Commission also ordered the confiscation of gold.
So yes. The attack on Bitcoin is coming. https://t.co/QFgnc15LhM
— Balaji (@balajis) June 8, 2023
Executive stated that there has been pressure in the past and does not preclude future action by regulators
Comparing the confiscation of gold in 1933 to the current situation of pressure experienced by some US cryptocurrency exchanges, Balaji made it clear that, in his personal opinion, an attack on bitcoin is not an impossible scenario.
In finishing his thought, the former Coinbase declared that the purpose of the gold seizure was to control the economy, which can happen again, only this time against bitcoin.
“The whole *point* of the SEC, the gold thefts, and the New Deal was to establish state control over the economy.”
It is not yet clear whether the current measures against Binance and Coinbase in the US can actually have an effect on bitcoin, but some fans of decentralized technology are already warning of such a situation.
Balaji rose to fame in 2023 after betting that the dollar would collapse and that bitcoin could appreciate brutally. However, after repercussions, he himself admitted that he was wrong in his highly optimistic prediction.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
