Arthur Hayes expressed his firm opposition to the US Strategic Bitcoin Reserve (SBR) during his recent BitMEX blog entry. Some Bitcoin supporters consider the US Strategic Bitcoin Reserve as a way to validate Bitcoin but Hayes maintains that this plan might weaken the crypto industry.
Political Risk Analysis
According to Hayes the main weakness of the SBR plan stems from the fact that government-held assets become simple purchase targets during shifts in political control. The Bitcoin reserve risks becoming an easy financial source for future political leaders who may support any political party.
Implementation Concerns
According to Hayes the BitMEX co-founder the United States government shows limited interest in actively engaging with Bitcoin-based systems. He believes the government lacks genuine dedication to Bitcoin core development and its basic operation and permanent support which hints at a short-term political motive.
Regulatory Landscape
During his testimony before Congress Hayes strongly opposed the “Frankenstein crypto bill” which constituted the main point of his regulatory critique. Proposed financial regulations will apparently protect large financial institutions at the expense of new startups and smaller companies because of their demanding compliance requirements.
The Reserve Controversy
Hayes warns crypto business owner that depending on U.S. crypto-supportive policies exposes them to significant dangers. According to Hayes existing regulatory patterns will produce an industry environment where major companies maintain monopolies which might prevent authentic advancements within cryptocurrency domains.
