In today’s crypto update, BitMEX co-founder Arthur Hayes has called on U.S. President Donald Trump to veto the proposed CLARITY Act. Hayes argued that Bitcoin and the broader crypto industry should not depend on government regulation to survive.
Speaking during an interview with The Wolf Of All Streets, Hayes warned that excessive regulation could damage the core principles that made crypto successful over the past 15 years.
Crypto Does Not Need Government Protection
During the interview, Hayes stated that if Bitcoin and crypto projects need regulatory approval to remain relevant, then they would not be “worth a penny.” He argued that the industry was created to operate outside traditional financial systems and government control. According to Hayes, crypto has already proven its resilience through multiple market cycles, exchange collapses, and regulatory crackdowns.
He believes the sector should continue evolving naturally without relying on Washington for survival. The BitMEX founder also warned that overregulation could limit innovation. He suggested that lawmakers may eventually favor large corporations and financial institutions while making it harder for smaller crypto firms to compete.
Hayes Warns Against Institutionalizing Bitcoin
Hayes acknowledged that major banks are increasingly interested in crypto-related products. He explained that many clients are seeking non-correlated assets to protect against inflation and the weakening value of fiat currencies.
He added that banks also see a major revenue opportunity through fees tied to crypto investment products and custody services. This growing institutional demand has pushed traditional financial firms deeper into the digital asset market over the past few years.
Despite this trend, Hayes warned that pushing Bitcoin too far toward institutionalization could weaken the foundations of the crypto movement. He said the industry risks losing its independence if Wall Street and large financial players gain too much control. According to Hayes, the crypto ecosystem was built on decentralization, self-custody, and financial freedom. He believes these principles could slowly fade if regulation heavily favors institutional participation.
CLARITY Act Gains Momentum In The Senate
Meanwhile, the debate comes as the Crypto CLARITY Act, which had stalled for several months, finally advanced past the Senate Banking Committee to the full Senate.
Unlike Hayes, several crypto executives remain optimistic that the bill’s approval would mark a monumental milestone in crypto regulation. Following the Banking Committee’s successful clearance, Ripple CEO Brad Garlinghouse publicly praised lawmakers for advancing the legislation.
Meanwhile, the chairman of the U.S. Senate Banking Committee, Tim Scott, stated that the CLARITY Act would bring digital assets into a fairer, safer, and more transparent system. U.S. Treasury Secretary Scott Bessent had also earlier reiterated that the bill would provide relief to the broader crypto market. The full Senate is now expected to debate and hold a floor vote on the bill within the next 30 days.
Josiah Oluwadare
