Arthur Hayes warns US Bitcoin reserve plan would be a misguided political stunt

Arthur Hayes, the co-founder of BitMEX, has strongly opposed the proposed US Strategic Bitcoin Reserve (SBR), calling it a misguided initiative.

In a Feb. 6 blog post, he argued that the reserve plan and a looming regulatory bill would do more harm than good for the crypto industry.

Argument against SBR

Hayes criticized the US government for accumulating Bitcoin as part of a national stockpile, a move some crypto advocates believe would legitimize the asset and boost its value.

He pointed out a fundamental flaw: any asset that a government buys can just as quickly be sold, particularly when political leadership changes.

He warned that a new administration could see the Bitcoin reserve as a financial lifeline and liquidate it to fund political initiatives.

He wrote:

“To an incoming Democrat-controlled legislature or Presidency, finding easy piles of cash to spend on goodies for their supporters is the first directive. It is the first directive of any politician, regardless of the political system in practice. There are one million Bitcoin just sitting there, ready to be sold; it just takes a signature on a piece of paper.”

Hayes also said that governments stockpile assets for political leverage rather than long-term financial strategy. If the US were to buy Bitcoin in large quantities, prices would likely surge. But once the buying stops, the momentum could fade, leading to market stagnation or downturns, he explained.

Beyond the economic implications, Hayes questioned whether the US government would engage with the Bitcoin ecosystem meaningfully.

He doubted they would contribute to development, support Bitcoin core engineers, or operate nodes. Instead, he suggested the initiative might serve as a temporary political stunt rather than a long-term commitment.

Hayes stated: