Arthur Hayes Doubts U.S. BTC Purchase Despite Reserve Bill Gaining Traction

By: bitcoin ethereum news|2025/05/03 13:15:02

Arthur Hayes warns that Bitcoin’s public image and U.S. deficit spending make new federal BTC purchases unlikely. Senator Cynthia Lummis pushes a bold strategy to grow a one-million BTC reserve and curb long-term national debt. Arthur Hayes has revealed his doubt on the likelihood of the United States buying more BTC, citing fiscal problems and public perception. The BitMEX co-founder said in a recent interview that U.S. leaders may avoid printing dollars to purchase Bitcoin due to growing scrutiny around the cryptocurrency’s cultural image, pointing out those who go to nightclubs. Public Image and Deficit Spending Raise Doubts Hayes noted that the U.S. already holds around 200,000 BTC seized from criminal cases. He said this may represent the full extent of the country’s Bitcoin reserve for now. Speaking to Kyle Chasse on May 1, Hayes questioned whether any elected official would openly support using printed money for Bitcoin. Hayes stated that the U.S. is a deficit country and depends on debt to run its budget. He explained that building a Bitcoin reserve beyond seized assets would require spending that is hard to justify. “You’re going to print money to buy Bitcoin, and people see Bitcoin bros at the club?” Hayes asked. He said this perception could damage the credibility of any government policy involving Bitcoin purchases. Hayes believes that the current image of crypto users may deter policymakers from expanding the reserve. “Is that really the image the government wants to project?” he added. Does President Trump Hold Strong on U.S Strategic Bitcoin Reserve? Earlier this year, President Donald Trump signed an executive order to establish a federal Bitcoin reserve. The program uses BTC seized through forfeitures, forming a stockpile of nearly 200,000 BTC without taxpayer costs. Executive Director Bo Hines said more Bitcoin could be added using tariff revenues or other neutral funding methods. Despite the executive order, Hayes remains skeptical that further purchases will be made under current political and fiscal conditions. In a recent talk at Capitol Hill, Senator Cynthia Lummis is leading efforts to legislate a long-term Bitcoin Reserve Strategy. The BITCOIN Act is the only solution to our nation’s $36T debt. I’m grateful for a forward-thinking president who not only recognizes this, but acts on it. pic.twitter.com/NVWH6v2EcH — Senator Cynthia Lummis (@SenLummis) May 2, 2025 She said her BITCOIN Act, which has Trump’s backing, would require the U.S. to acquire 200,000 BTC annually for five years. This would build a one million BTC reserve held for at least two decades. Lummis warned of mounting debt and rising inflation, saying that fixed-supply assets like Bitcoin may offer discipline. Meanwhile, asset manager VanEck projects the proposed reserve could offset up to $21 trillion in national debt by 2049. Highlighted Crypto News Today ‌Pi Network Grants Mainnet Access to Users at Any KYC Stage Source: https://thenewscrypto.com/arthur-hayes-doubts-u-s-btc-purchase-despite-reserve-bill-gaining-traction/

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