Bitcoin’s Philosophy Meets Institutional Reality

[madmax]

At its core, the backlash reflects a deeper tension between crypto’s original ideals and its institutional future. Bitcoin, shaped by the cypherpunk ethos of Satoshi Nakamoto, was designed to reduce reliance on intermediaries and preserve financial privacy.

Critics argue the bill keeps the blockchain rails but rebuilds the surveillance architecture of traditional banking on top of them. While self-custody and nodes may remain untouched, most users still rely on regulated on-ramps and off-ramps — meaning Bitcoin could start to feel less like peer-to-peer cash and more like another account in the existing financial system.

[ed]

bitcoin turning into “banking but on chain” was kinda the fear all along