Arthur Hayes Slams Trump’s Bitcoin Reserve, Calls It a Political Disaster
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Bitcoin as a Political Weapon
The idea of a U.S. Bitcoin reserve was initially proposed by Senator Cynthia Lummis, who suggested the government buy one million BTC to create a digital gold reserve. However, Hayes dismissed the idea, warning that once the government stops purchasing, the market would crash.
“Politicians would use BTC’s price surges for short-term gains and dump holdings when convenient,” Hayes wrote. He also predicted that future administrations could liquidate the reserve to fund various policies, causing mass panic in the market.
Regulation & the “Frankenstein Crypto Bill”
Hayes also criticized crypto regulations favoring centralized giants like Coinbase and BlackRock, calling them a “Frankenstein crypto bill.” He argued that such regulations stifle innovation and undermine decentralization.
Alternative Proposal: Bitcoin as a Reserve Asset
Instead of a Bitcoin reserve, Hayes suggested the U.S. Treasury gradually devalue bonds and shift to BTC. He believes this could push Bitcoin’s price to $1.8 million and establish it as a legitimate reserve currency.
Final Warning: Crypto’s Future Depends on Action
Hayes urged crypto holders to push for better regulations, warning that relying on politicians could harm the industry. “If you’re waiting for politicians to save crypto, you’re screwed,” he wrote.