- BitMEX’s Arthur Hayes warns against the US Bitcoin reserve becoming a political tool.
- A potential Bitcoin stockpile could undermine its decentralized nature, Hayes claims.
- A drafted bill by Senator Lummis may secure BTC reserves against political misuse.
Arthur Hayes, co-founder of BitMEX, warns that a US Bitcoin reserve could be weaponized politically, compromising Bitcoin’s decentralized nature. His remarks have sparked debate in the crypto community.
On his blog, Hayes argued that a Bitcoin-backed reserve—or a national stockpile of crypto assets, including Ripple—could harm the industry. He believes the government places political objectives and dollar preservation above financial returns when it stockpiles assets.
“The overarching goal of two of Trump’s most essential lieutenants, US Treasury Secretary Scott Bessent and US Secretary of State Mark Rubio, is to reform the global economic order to preserve the dollar and American hegemony.”
Hayes warns that such a move could stifle innovation and favor large centralized companies over smaller players. He noted that a Democratic win in 2028 might lead to the sale of the reserve, triggering market instability.
Related: Bitcoin Price Crash? Arthur Hayes Predicts March Meltdown
US Bitcoin Reserve Plan Splits Community
Some crypto enthusiasts agree that Bitcoin’s real strength lies in its decentralized nature, which would be at risk if controlled by one government. Others dismiss Hayes’ concerns, pointing to a draft bill by Senator Cynthia Lummis that, if enacted, would protect Bitcoin reserves from abrupt presidential shifts.
Even so, Hayes warns that loopholes in executive orders remain a worry. Crypto investors remain split on whether a US Bitcoin reserve would strengthen or weaken market stability.
Echoes from the Crypto Czar
Hayes’ comments come alongside recent remarks from David Sacks, the US Crypto Czar, who stated that the administration’s top priority is to assess the feasibility of a Strategic Bitcoin Reserve.
Related: US Crypto Czar Examines New Strategic Bitcoin Reserve ‘Potential’
Sacks lauded Bitcoin as an “excellent store of value,” hinting at its possible role in a Sovereign Wealth Fund. The announcement sparked excitement in the crypto community.
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