Trump’s Crypto Support is Futile Without Government Backing, Says Arthur Hayes

Arthur Hayes, a significant figure in the cryptocurrency world, has expressed strong opinions about former President Donald Trump’s support for cryptocurrencies. In a recent interview, Hayes pointed out that Trump’s pro-crypto stance is unlikely to have a substantial impact if the broader government remains opposed. Hayes, the co-founder of BitMEX and a prominent voice in the crypto community, has a deep understanding of both traditional finance and the evolving crypto landscape, making his insights particularly valuable.

 From Wall Street to Crypto: Arthur Hayes’ Journey

Arthur Hayes began his career at Deutsche Bank’s trading floor in Hong Kong in 2008, just as Lehman Brothers collapsed. Witnessing the financial crisis firsthand at such a young age, Hayes saw the fragility and corruption within the banking system. This experience eventually led him to embrace Bitcoin, which he saw as a revolutionary alternative to traditional finance. Over the next decade, Hayes co-founded BitMEX, a cryptocurrency exchange that made him a billionaire, though he faced legal challenges along the way.

 The Reality of Government Influence on Crypto

Hayes argues that despite the crypto industry’s financial contributions to political campaigns, it cannot compete with the influence of major financial institutions like JPMorgan and Goldman Sachs. Many government agencies are staffed with former employees of these large banks, creating an environment where pro-crypto policies struggle to gain traction.

 Continuous Money Printing and Crypto’s Rise

A central theme in Hayes’ perspective is the inevitability of money printing by any administration, whether it’s Trump’s or a potential Harris administration. He believes that this continuous printing will drive the value of cryptocurrencies higher over time, despite market volatility.

“Both the Trump administration or Harris administration will print the money. They do it in different ways. But the money will be printed,” Hayes said.

This relentless money printing, according to Hayes, supports the long-term growth of crypto assets.

 Regulatory Hurdles and the Misplaced Focus on Gary Gensler

Hayes also addresses the regulatory challenges facing the crypto industry, suggesting that the focus on SEC Chairman Gary Gensler is misguided.

“People are getting confused with the symptom rather than the issue. Firing Gary isn’t gonna do anything,” Hayes remarked.

He believes that the real issue lies in the regulations themselves, not just the individuals enforcing them. Changing these regulations, rather than targeting specific regulators, is crucial for the industry’s growth.

 The Unlikelihood of a U.S. Bitcoin Reserve

When it comes to the idea of the U.S. holding a Bitcoin reserve, Hayes is skeptical. He argues that such a move would require significant political support, which he deems improbable.

“You’re going to need to have a certain amount of people vote for this. It’s not a practical idea,” he stated.

However, Hayes does see merit in the concept of weakening the dollar and buying Bitcoin and gold. He believes this strategy could benefit the U.S. economy, though he doubts the government would adopt it, likely opting for gold over Bitcoin.

 The Battle for Decentralization in Crypto

Hayes also criticizes the involvement of large financial entities like BlackRock in the crypto market. He argues that the essence of crypto is decentralization and that products offered by such institutions undermine this principle.

“A BlackRock should be able to use Bitcoin and somebody who has no financial services in the Philippines should be able to use crypto,” Hayes explained.

He warns that owning crypto through these products means owning a derivative of crypto, not the actual asset, which contradicts the core philosophy of decentralization.

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