Arthur Hayes Rejects U.S. Bitcoin Reserve, Calls It a Political Maneuver

• Hayes argues that a U.S. Bitcoin reserve would be leveraged for short-term political gains rather than economic stability.
• He warns that new crypto regulations could favor major financial players like Coinbase and BlackRock, limiting competition.
•  A future administration could liquidate the Bitcoin reserve, creating instability and uncertainty for the cryptocurrency market.

BitMEX co-founder Arthur Hayes has dismissed the notion of a U.S. Bitcoin reserve, arguing that it serves political interests rather than financial stability. In a February 5 essay titled “The Genie,” Hayes stated that government stockpiling of Bitcoin would not provide lasting economic value but would instead be leveraged for short-term political gains.

Bitcoin Reserve as a Political Instrument

Hayes asserted that any Bitcoin acquired by the U.S. government could be sold just as easily as it was bought. He emphasized that politicians typically use asset accumulation for short-term benefits rather than long-term stability. 

While some proponents view Bitcoin as the strongest form of money, he noted that the U.S. government lacks any fundamental economic use for it. He stated that political leaders could manipulate Bitcoin’s price fluctuations for their agendas rather than adopting its decentralized principles.

Uncertainty Over Bitcoin’s Role in Government

Hayes questioned whether the administration would actively engage with Bitcoin beyond simply holding it as a passive asset. He raised concerns about whether the government would run nodes, support developers, or treat Bitcoin as nothing more than a symbolic trophy. He also indicated that Trump’s campaign could use Bitcoin’s volatility as a fundraising tool, making the reserve more of a political asset than a financial safeguard.

Discussions about a federal Bitcoin reserve have gained traction following Trump’s announcement of a sovereign wealth fund. Lummis has hinted that such a fund could be used to buy Bitcoin. Prediction market platform Polymarket currently places the likelihood of a U.S. Bitcoin stockpile before 2025 at 46%.

Hayes also criticized ongoing crypto regulatory efforts, referring to them as a Frankenstein crypto bill. He argued that any new regulatory framework would likely be overly complex and favor only the largest players in the industry. He pointed out that compliance costs would be prohibitively high for smaller firms, benefiting major institutions like Coinbase and BlackRock.