BitMEX co-founder Arthur Hayes has raised doubts about the idea of a U.S. Bitcoin reserve, suggesting that its use would be directed toward political rather than economic goals.
Bitcoin Reserve as a Political Instrument
Hayes asserts that any Bitcoin acquired by the U.S. government could be sold as easily as it was bought. He emphasizes that politicians tend to use asset accumulation for short-term benefits rather than long-term stability.
Uncertainty Over Bitcoin’s Role in Government
Hayes questions whether the administration would take a more active role with Bitcoin beyond simply holding it as a passive asset. He expresses concern that the government might use Bitcoin's volatility for political purposes instead of adhering to its decentralized principles.
Regulatory Changes in the Cryptocurrency Sphere
Hayes also critiqued ongoing crypto regulatory efforts, referring to them as a 'Frankenstein crypto bill.' He argues that such a framework would be overly complex and favor only the largest players in the industry.
Hayes warns that a U.S. Bitcoin reserve could create instability in the cryptocurrency market and that regulatory efforts might limit competition, favoring major financial entities.
