Arthur Hayes Explains Why Trump Should Veto the Clarity Act

Hayes draws a distinction that most regulatory commentary collapses: banks should be allowed to offer Bitcoin products because their clients want them, but designing regulatory infrastructure to make Bitcoin institutionally acceptable is a different project, and one that produces a product with counterparty risk Bitcoin was specifically built to remove.

Banks want to offer crypto because clients want non-correlated assets that have performed well in inflationary environments and periods of fiat expansion. That is a legitimate business case and Hayes does not dispute it. What he di...