Arthur Hayes warns of a bitcoin reserve plan that will be a misleading political trick

Arthur HayesParticipating founder for PortraitHe strongly opposed the proposed American strategy Bitcoin Reserve (SBR), describing it as a misleading initiative.

On February 6 Blog postHe said that the reserve plan and the draft regulatory law that looms on the horizon will harm more than the encryption industry.

An argument against SBR

Hayes criticized the US government Bitcoin accumulated as part of a national stockA step that some encryption defenders believe will pressure the original and enhance its value.

He pointed to a basic defect: That is, one of the assets that the government buys can be sold at the same speed, especially when the political leadership changes.

And warned that a new administration could see Bitcoin Reserve Like a financial life line and its liquidation to finance political initiatives.

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“With regard to the next legislative body or the presidency controlled by Democrats, finding easy piles of money to spend on good things for their supporters is the first guidance. This is the first guidance for any politician, regardless of the political system in practice. There is only a million bitcoin sitting there, Ready for sale;

Hayes also said that governments store assets for leverage instead of long -term financial strategy. If the United States will buy bitcoin in large quantities, the prices are likely to rise. He explained that the momentum may fade, but as soon as the purchase stops, the momentum can fade, which leads to the stagnation of the market or retreat.

Besides the economic effects, Hayes wondered whether the United States government would deal with the ecosystem of Bitcoin useful.

They have questioned that they will contribute to development, support for Bitcoin, or contract. Instead, the initiative suggested that the initiative be a temporary political trick, not a long -term commitment.

Hayes stated:

“Will they donate to care for Devs Bitcoin Core? Will they run the contract? Maybe … but how to talk about BSR, it seems to me to be a kind of specified exercise. Trump and the Republican Party can look at the price of Bitcoin, and demand the message that It was accomplished.

Organizational concerns

Besides SBR, Hayes also had concerns about the regulation of encryption, with the aim of what it called “Brankenstein Crypto Bill”.

Hayes argued that organizational measures are likely to serve the interests of well -known financial institutions instead of enhancing innovation.

He pointed out that the companies of the large investors in the central financing companies (CEFI) are practicing the most influencing the formation policy. He warned that these entities are likely to press for the regulations that they can only comply, making it almost impossible for smaller players.

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“From my point of view – away from the circus surrounding the gene – it seems that people who have large shares in the central Malian brokers are likely to have regulatory desires to encrypt due to the amount of noise they generate.”

Hayes also had a warning message to project owners in the hope that the United States would provide a stable organizational environment. He warned that the companies ’giants will work to maintain their hegemony by making compliance very expensive for startups.

He added:

“The regulatory desires for encryption will be granted, if any of them, at all, will be granted in the form of very complex rules, large and wealthy central companies can only bear.”

In the event of such a situation, the co -founder of Bitmex indicated that it will create a monopoly -dominated industry while reducing the number of innovative startups.

Hayes concluded:

“For all world -class builders who are moving to America due to a friend of encryption, take. If you support this implicit result, it will be scheduled to fail. The startup is scheduled. The monopolistic companies that were prepared by a wall cannot be hacked from the Gobbledygook regulations. Actual innovation.

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