Arthur Hayes has sparked fresh debate around crypto regulation after saying he hopes Donald Trump vetoes the proposed CLARITY Act if it reaches his desk.
Speaking during an interview on The Wolf Of All Streets, Hayes made his position clear, saying:
“If Bitcoin and crypto needed regulations to survive, it wouldn’t be worth a dime.”
Hayes argued that banks are pushing into crypto mainly because clients want exposure to assets that can hedge against inflation and fiat currency debasement.
According to him, Bitcoin’s strong performance during periods of heavy money printing is what attracts institutional interest. He also noted that banks simply see crypto as another profitable product to offer clients.
Still, Hayes pushed back hard against what he sees as the over-institutionalization of Bitcoin.
“Why are we bending over backwards to try to institutionalize Bitcoin?” Hayes asked during the interview. He warned that turning Bitcoin into another traditional financial product could destroy the original purpose of crypto.
He added, “What’s the point? If you’re just going to have another derivative that sits on some member of the financial system’s balance sheet, we already got that.”
Hayes also referenced Brian Armstrong while discussing growing lobbying efforts tied to crypto regulation.
He acknowledged that Armstrong is doing what benefits Coinbase shareholders but argued that large crypto firms may not always represent the broader crypto ecosystem.
“He is a CEO of a publicly listed centralized crypto company, and he’s doing everything in his power to make his shareholders money,” Hayes said.
At the same time, Hayes questioned whether large corporate crypto players truly prioritize retail users or open-source developers.
The comments come as the crypto industry remains divided over regulation and institutional adoption.
Supporters of the CLARITY Act believe clearer rules could bring more legitimacy and institutional capital into digital assets. Critics like Hayes, however, worry that too much integration with traditional finance could weaken the decentralized foundations Bitcoin was originally built on.
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