When did government involvement start to feel like Bad News for Bitcoin?

[Vaculin]

Have you noticed how things changed over the years?

Before, every time the government got involved with Bitcoin... like making regulations or recognizing crypto, people saw it as a positive development, a sign that Bitcoin was being accepted and going mainstream.

But lately, it feels like the opposite TBH, when the government steps in now, most of us react negatively. Instead of excitement, we think of stricter KYC rules, higher taxes, and more surveillance. It’s like the same “involvement” that once gave legitimacy now feels like control.

So what do you think happened? Did the government really change, or did the whole idea of Bitcoin being free from centralized control just remind us why too much regulation might not be good after all?

[Alpha Marine]

So what do you think happened? Did the government really change, or did the whole idea of Bitcoin being free from centralized control just remind us why too much regulation might not be good after all?

Too much regulations.
There has to be a balance. Regulate it so people don't exploit it and commit crimes freely with it, but at the same time, people's privacy should be respected. The problem with the government is that as long as you're willing to compromise, they will always go a step further. At the rate things are going now, I wont be surprised if some countries start making non-custodial wallets illegal in their countries in the future. I think that's what caused the shift.

Most recently, people thought Trump would make things different; I didn't, but a lot of people inside and outside this forum did. I didn't understand why, though. Now, they've seen that he's not what they expected, so they've become more sceptical of governments getting involved in Bitcoin.

[kotajikikox]

Have you noticed how things changed over the years?

Before, every time the government got involved with Bitcoin... like making regulations or recognizing crypto, people saw it as a positive development, a sign that Bitcoin was being accepted and going mainstream.

But lately, it feels like the opposite TBH, when the government steps in now, most of us react negatively. Instead of excitement, we think of stricter KYC rules, higher taxes, and more surveillance. It’s like the same “involvement” that once gave legitimacy now feels like control.

I actually observed the opposite. Back then, crypto was not recognized by any state or entity as legitimate or even helpful in any way or form which in turn has made a lot of people and countries turn their backs away from crypto. Back then if crypto was mentioned it was only for restriction as opposed to now where they are buying crypto themselves. For example in the US back then, the senate isn't as open to crypto as they are now passing laws that would help crypto adoption. I am not saying one is better than the other. There are advantages and disadvantages but this is only what I have observed.

[Franctoshi]

The fact that Since the government can manipulate the price of Bitcoin through its regulatory policies that now affect the price movement of Bitcoin and other cryptocurrencies, it has now become so worrisome if this continues, because many investors now rely/depend on Donald Trump’s speech or tweets for them to take their investment decisions,  which we saw the huge negative impact on the market from the last tariff sanctions he placed on China and other European countries.

[coupable]

But lately, it feels like the opposite TBH, when the government steps in now, most of us react negatively. Instead of excitement, we think of stricter KYC rules, higher taxes, and more surveillance. It’s like the same “involvement” that once gave legitimacy now feels like control.

If you consider what happened before as a positive side of the story of government being involved, you shouldn't consider the second approach as negative. Governments will never deal with bitcoin in the same caracteristics it was built for, privacy anonymity financial freedom. But it would take from it what it can be used and can be dealt with. This is why today we only have one country El Salvador recognize bitcoin as a legal tender, while all the other country where bitcoin is regulated recognize bitcoin as a commodity or a security.

[laspol65]

Yes, it is true that the governments of various countries have now started giving priority to Bitcoin, because Bitcoin is becoming so popular at present that why should their country lag behind. Although in the past they used to make strict rules, but now it does not create much blame on the people. Because since other countries are making great progress by supporting Bitcoin and Bitcoin is playing a huge role in eliminating the economic shortage of the country.
So although the government is trying hard to catch this Bitcoin, starting from the control, they have naturally achieved positive policies even if they do not apply strong pressure on both.

[AmoreJaz]

Yes, it is true that the governments of various countries have now started giving priority to Bitcoin, because Bitcoin is becoming so popular at present that why should their country lag behind. Although in the past they used to make strict rules, but now it does not create much blame on the people. Because since other countries are making great progress by supporting Bitcoin and Bitcoin is playing a huge role in eliminating the economic shortage of the country.
So although the government is trying hard to catch this Bitcoin, starting from the control, they have naturally achieved positive policies even if they do not apply strong pressure on both.

Take it or leave it, so to speak. As they have witnessed that no entity can stop this market, they need to act as to how they can take advantage of this market. Else, they will be left behind.

[Finestream]

This isn’t actually government accepting and adopting bitcoin, but I feel like it’s more on government taking advantage with bitcoin. All they want is still full control, regardless how bitcoin was originally claimed to be as decentralized, still the freedom to get free from the government I think won’t be happening anymore. And worst is, the government also benefits from getting some shares and commissions from bitcoin revenues.

This isn’t the path we imagined for bitcoin. But we’re left with no choice, otherwise the government will remain to be the biggest enemy and threat for the continued success of bitcoin.

[sunsilk]

So what do you think happened? Did the government really change, or did the whole idea of Bitcoin being free from centralized control just remind us why too much regulation might not be good after all?

I guess that it has become too much regulation. It's not good then but we've asked for this long time ago when there's not that much adoption.

We give them credit of how they're able to help with the adoption because of the policies that they're making which is in favor of Bitcoin.

And also being spoken out about bitcoin, it has helped as well. But I think that it's the media that we have to blame here when even there's not that much to say.

Anything that they put in the headlines are being romanticized by them for people and the markets to react.

[Pumpsta]

when the government steps in now, most of us react negatively. Instead of excitement, we think of stricter KYC rules, higher taxes, and more surveillance. It’s like the same “involvement” that once gave legitimacy now feels like control.

I think you just don’t get it: Bitcoin with KYC & surveillance is useless besides for speculation. It’s the entire point of its existence.. the laws imposing stricter KYC and more control are laws against BTC, they aren’t supportive laws.

[Botnake]

When it’s already compromising our own privacy and anonymity that we’re supposed to experience with bitcoin. Now, we can see that the government is slowly showing support and acceptance, but it’s only late to realize that they’re up for a hidden agenda, to monitor our bitcoin transactions and identify who owns maximum amount of bitcoin.

With this, the government is no longer our support and protector, but it will always be a threat for us bitcoiners.

[retaur]

It got big and they saw reason to control it and prove they had power.

Before, they could befriend a journalist or just waffle to a camera about how Bitcoin will be illegal some day, how it's all a bubble waiting to burst and how you're going to get scammed regardless of what you do.

None of that happened. Now what? It's been accepted as an ETF asset in the US (after Europe did it a while before) and even before that you could trade leveraged BTC (as microstrategy) on the stock market (definitely riskier than buying the asset as a secure ETF) or by buying Grayscale shares which had a huge premium.

[Vaculin]

Too much regulations.
There has to be a balance. Regulate it so people don't exploit it and commit crimes freely with it, but at the same time, people's privacy should be respected. The problem with the government is that as long as you're willing to compromise, they will always go a step further. At the rate things are going now, I wont be surprised if some countries start making non-custodial wallets illegal in their countries in the future. I think that's what caused the shift.

Most recently, people thought Trump would make things different; I didn't, but a lot of people inside and outside this forum did. I didn't understand why, though. Now, they've seen that he's not what they expected, so they've become more sceptical of governments getting involved in Bitcoin.

That’s already how the system worked under fiat even before the government started regulating Bitcoin (or crypto in general). That’s actually the main reason why Bitcoin was created to move away from centralized control and have our own system.

But then, the government noticed how people loved it and the kind of freedom it gave, so they started regulating it to gain as much control as they could. Of course, they can’t control the blockchain itself since it’s decentralized, but they try to instill fear by threatening lawsuits if we don’t comply. It’s pretty clear they want to take control of crypto through regulation. And the truth is when something’s run by people without transparent checks and balance, corruption will always find its way in.

I actually observed the opposite. Back then, crypto was not recognized by any state or entity as legitimate or even helpful in any way or form which in turn has made a lot of people and countries turn their backs away from crypto. Back then if crypto was mentioned it was only for restriction as opposed to now where they are buying crypto themselves. For example in the US back then, the senate isn't as open to crypto as they are now passing laws that would help crypto adoption. I am not saying one is better than the other. There are advantages and disadvantages but this is only what I have observed.

But look where we are now, regulations everywhere. We keep asking the government to recognize Bitcoin as legitimate, but the way they’re doing it completely kills the main reason we use Bitcoin in the first place.... freedom.

That’s also why people use mixers, to protect privacy. But instead of doing proper investigation, they just label everything as illegal or linked to money laundering. It’s lazy work, honestly.

And now, it feels like we need government approval before making any move. That’s not decentralization anymore, at least not once you step outside the actual blockchain network.

The fact that Since the government can manipulate the price of Bitcoin through its regulatory policies that now affect the price movement of Bitcoin and other cryptocurrencies, it has now become so worrisome if this continues, because many investors now rely/depend on Donald Trump’s speech or tweets for them to take their investment decisions,  which we saw the huge negative impact on the market from the last tariff sanctions he placed on China and other European countries.

That’s one big reason why a lot of us feel the government isn’t really for the people .. it’s for the elites, the oligarchs. Sad reality, but that’s how the system’s built.

Take it or leave it, so to speak. As they have witnessed that no entity can stop this market, they need to act as to how they can take advantage of this market. Else, they will be left behind.

If we don’t fight for our rights and freedom, the network itself might survive but adoption won’t. Like what was mentioned earlier, they use regulations as a weapon to scare people. I mean, who would want to risk getting jailed, right?

They disguise it as something that’s “for the good of everyone,” but it’s not. They’re the real manipulators. What’s wrong can easily be turned into “right” just because they’re the government, and they hold more credibility than us ordinary people. If Satoshi were around to see all this, I doubt he’d be happy with what’s happening.

[LogitechMouse]

---
But lately, it feels like the opposite TBH, when the government steps in now, most of us react negatively. Instead of excitement, we think of stricter KYC rules, higher taxes, and more surveillance. It’s like the same “involvement” that once gave legitimacy now feels like control.

So what do you think happened? Did the government really change, or did the whole idea of Bitcoin being free from centralized control just remind us why too much regulation might not be good after all?

Well, that's the consequence of what we want to happen. Regulation.

We want cryptocurrencies to be regulated, right? Of course, there's an exchange to it and here it is. TBH, I haven't feel anything negative with the government being involved with Bitcoin. The problem is that, Trump is looking like he's manipulating the market because of his decisions. I mean we just saw a massive dump because of tariffs then a few hours ago, he posted a positive thing about it then after that, he posted a negative one again that caused the market to dump yet again to it's previous prices.

Like others said here, there must be a balance between the two, but it seems like that's not happening at all. Regulation is good, and we're already seeing the positive things of it. It's just that there are some things that needs to be sacrificed for it to happen. Well, it is what it is now. Let's not forget that there are always pros and cons to everything.

[traderethereum]

The government changes their minds when they sees Bitcoin grow fast especially after Covid-19 attacks. They see Bitcoin as a new way to make money and the number of people who use Bitcoin has increased. They think that they can get more income from the tax they impose on the crypto user.

Besides that, the government doesn't like the nature of Bitcoin because they can't control it. They can't do something like what they do with fiat but they can control their citizen to pay more taxes. So that is why they seem to want to tighten the regulations for crypto users. We can only watch what they will do later.

[Darker45]

It seems the government changed for the better as far as its treatment of Bitcoin is concerned. Restrictions are lifted. Traditional financial institutions can now offer various products on Bitcoin. Banks are now allowed to offer custodial services. Regulatory bodies are now embracing it. Businesses and even government offices accept it as payment. Top officials are even speaking positively of it.

But there will always be compromises. You can't expect the government to give absolute freedom to Bitcoin supporters and Bitcoin-related entities. Whatever happens, governments represent regulation, control, taxes, surveillance. That's what they're for. I'm afraid the reality is that you can't completely reconcile the two. There'll always be conflicting points, therefore, trade-ins. The good thing is that Bitcoin's code remains beyond any government's interference.

[Smack That Ace]

Too much regulations.
There has to be a balance. Regulate it so people don't exploit it and commit crimes freely with it, but at the same time, people's privacy should be respected. The problem with the government is that as long as you're willing to compromise, they will always go a step further. At the rate things are going now, I wont be surprised if some countries start making non-custodial wallets illegal in their countries in the future. I think that's what caused the shift.

I have also thought about this situation, I would not be surprised if one day the government issues a ban on non-custodial wallets.
Because at the end of the day, no matter how bitcoin-friendly they are, they never want to lose control over their citizens. So, banning non-custodial wallets is entirely possible in the future.

But the thing is, whether we compromise with them or not, whether we agree or not, if they want more regulations, we can't stop them.

Most recently, people thought Trump would make things different; I didn't, but a lot of people inside and outside this forum did. I didn't understand why, though. Now, they've seen that he's not what they expected, so they've become more sceptical of governments getting involved in Bitcoin.

People support Trump and trust him, because all they need is profit. They believe that having a president who supports bitcoin will push its price to $500,000 or $1 million, and they will become rich. Not many bitcoin investors are as concerned about privacy as they claim to be.

[Olatundespo]

When the issue of government recognition comes before us, we see a glimmer of hope and wait for Bitcoin to open up another horizon. But the fact that Bitcoin has become a store of value without any government recognition in just a few years and the latest ATH of $125k creates a potential for even higher aspirations and the possibility of this asset being worth $1 million in the future. If centralized government recognition is for the purpose of increasing reserves, then Bitcoin will become an even greater asset because it currently has a functioning financial system. Along with gold and other valuable assets, recognizing Bitcoin as a federal reserve will be a groundbreaking decision for a country's economy.

[MrBen10]

Have you noticed how things changed over the years?

Before, every time the government got involved with Bitcoin... like making regulations or recognizing crypto, people saw it as a positive development, a sign that Bitcoin was being accepted and going mainstream.

But lately, it feels like the opposite TBH, when the government steps in now, most of us react negatively. Instead of excitement, we think of stricter KYC rules, higher taxes, and more surveillance. It’s like the same “involvement” that once gave legitimacy now feels like control.

So what do you think happened? Did the government really change, or did the whole idea of Bitcoin being free from centralized control just remind us why too much regulation might not be good after all?

Proposed Regulations: Recent proposed regulations, such as the Market Structure Bill and the GENIUS Act, have you invoked concerns among investors and the crypto community. These bills aim to establish clearer rules for stablecoins, exchanges, and digital asset custody, but critics argue they could introduce loopholes for illicit finance and sanctions.

Public Perception: Negative stereotypes surrounding crypto culture and concerns about government oversight have contributed to market tension. A growing trend of governments holding Bitcoin, such as the UK's quiet reserves and El Salvador's adoption, has sparked concerns about decentralization and individual control.

While it's difficult to pinpoint an exact moment, the increasing involvement of governments in the crypto space has led to uncertainty and debate among investors and enthusiasts. As governments navigate the balance between innovation and regulation, the future of Bitcoin remains uncertain.

[Outhue]

So what do you think happened? Did the government really change, or did the whole idea of Bitcoin being free from centralized control just remind us why too much regulation might not be good after all?

Too much regulations.
There has to be a balance. Regulate it so people don't exploit it and commit crimes freely with it, but at the same time, people's privacy should be respected. The problem with the government is that as long as you're willing to compromise, they will always go a step further. At the rate things are going now, I wont be surprised if some countries start making non-custodial wallets illegal in their countries in the future. I think that's what caused the shift.

Most recently, people thought Trump would make things different; I didn't, but a lot of people inside and outside this forum did. I didn't understand why, though. Now, they've seen that he's not what they expected, so they've become more sceptical of governments getting involved in Bitcoin.

I think the regulation was misdirected, Bitcoin isn't the one that needed the regulation but every other things that isn't bitcoin, alternative coins are the ones screaming for tight regulation as thousands of tokens are getting minted every day, this is not only affecting the few good coins but giving bad names to the blockchain.

Every single soul out there are now blockchain developer all because platforms that can make them print new tokens are not for free, Trump isn't doing great to be honest, I believe he looks away because of his own agenda in crypto, he choose to hunt for crypto money than to regulate it. His family is now in billions because of meme coins they created, one way or the other Trump will face some problem in the future. Black rock involvement screams out louder than others, due to the past history of black rock movement they are so powerful that wherever they touch they take control, now that they are here we are going to keep seeing manipulation moves like never before.