CEO of major crypto derivatives platform BitMEX, Arthur Hayes, has urged US President Donald Trump to veto the proposed CLARITY Act. The legislation is slated to face a full Senate vote in the near future after advancing through the banking committee with a healthy majority.
A President can veto legislation once it has passed the Senate, but it then returns to Congress for another tie-breaking vote. Donald Trump, a self-styled champion of cryptocurrency users in the USA, has long promoted the CLARITY Act as the defining crypto regulation that will define the digital asset landscape for decades to come. It appears highly unlikely that he will veto it, despite its heavily watered-down provisions compared to earlier drafts.
Hayes, in his usual outspoken style, stated that Trump should immediately veto the CLARITY Act because he believed that institutionalization of crypto would undermine everything the community has built over the years.
Wu Blockchain recently tweeted regarding the development:
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Hayes’ stance challenges the perception about the crypto industry’s widespread support for the bill, which recently advanced through the Senate Banking Committee on a 15-9 bipartisan vote. The CLARITY Act aims to resolve long-standing disputes between two federal regulatory authorities: the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
It also contains provisions for stablecoin yields and protections for the developers of DeFi platforms. Vocal proponents like Cynthia Lummis hail it as essential for ending “regulation by enforcement,” allowing improved legal clarity and avoiding US Capital flight towards more crypto-friendly jurisdictions like the UAE and Malta.
True Value of Crypto Not Tied to Regulatory Scaffolding- Arthur Hayes
The BitMEX co-founder has a different take altogether. For him, the true value of cryptocurrencies is in their usefulness as a hedge against inflation that has run rampant across the world, especially after the COVID-19 pandemic. According to Hayes, regulatory approvals should matter little for digital currencies as they are trying to challenge the current fiat economy.
He reiterated his early point that global macro liquidity and central bank money printing sprees are the real catalyst behind crypto adoption, and they are the reason why proponents believe that BTC will keep rising against the USD indefinitely.
Hayes’ views reflect deep cypherpunk sentiments regarding Bitcoin. The premier cryptocurrency was initially promoted heavily by this community as these cyber freedom advocates sought to fight hard against modern imperialism, lack of transparency, and deep state activities. Crypto purists are still very much against the CLARITY Act, but it is highly likely that it will be passed and signed into law by Donald Trump. The American president needs a regulatory victory before the mid-term elections, and this could be a big opportunity for him.
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