Crypto icon Arthur Hayes has ripped into investors who are falling head over heels for a certain political party just cause they seem to support crypto. He thinks these investors are being played like fools, chasing empty promises.
Politicians and their crypto cards
Last summer, Arthur took a trip to Ibiza, the hotspot for house music, with three friends. His college buddy, now living in London, organized the trip.
They started their adventure with an invite to a private party at a villa, surrounded by an elite crowd that felt like a transplant from Chiltern to the Balearic islands.
Arthur told us he and his former Hong Kong roommate knew no one at the party and headed straight to the bar to get lit. Later, they ended up in a hot, crowded room where DJ Carlita was playing.
During the party, they spotted Leonardo DiCaprio with a stunning woman trying to convince him to take her home. Arthur found it hilarious, eavesdropping on parts of the conversation. Whether she succeeded or not, it was an amusing sight.
This story ties back to crypto because politicians, like Trump, suddenly care about it. Donald Trump is looking to court the young, active, and newly wealthy crypto community to secure votes in key states like Michigan, Pennsylvania, and Florida.
He even suggested pardoning Ross Ulbricht, the Silk Road founder serving life in prison for running a Bitcoin-based marketplace, to appeal to the hot-blooded crypto lovers. Arthur said:
“I am dismayed that many crypto pundits who should know better are now blindly throwing fancy fundraisers for the Trump campaign. They erroneously believe that Trump is sincere and that if they just donate enough money, Operation Chokehold Crypto will vanish. That is poppycock. Trump is an astute politician.”
Arthur humorously wonders out loud how pro-crypto voters can leverage their influence. Is there a way to turn the 50 million American crypto holders into a powerful voting bloc without donating money? He believes there is, but it’s not easy. He added:
“Crypto holders, whether they favor Bitcoin, Ether, or Solana, must unite. Stop squabbling over which crypto is best. The state sees us all the same way—as outsiders.”
He pointed out the parallels between the 1964 and 2024 elections. Just as Malcolm X warned about politicians making false promises, Arthur warns that today’s political promises to the crypto community are equally as empty.
“Trump will say whatever it takes to get votes. If Biden were pro-crypto, Trump would be anti-crypto. It’s just smart politics.”
Arthur discussed the power of a united voting bloc. Crypto holders can pull a power move on the Republicans and flip their own script against them.
Per Coinbase’s estimates, 50 million Americans own crypto. If they come together and they vote together, they definitely will swing elections.
A simple legislation for crypto in America
Arthur proposed simple legislation to protect crypto as free speech. “Cryptographic currencies are forms of protected speech. Any law that restricts holding or transferring crypto is not applicable,” he said.
Arthur believes a law like that would mean permissionless innovation, the kind that built America into an empire. And the politicians who support it could take credit for the job creation and economic growth that would for sure come after that.
Arthur acknowledged opposition from traditional finance and within the crypto industry itself. TradFi lobbyists would fight against crypto being considered protected speech.
Arthur invited them to join the cause, arguing that financial regulations often serve to protect bureaucrats, not consumers. He also warned against crypto companies pushing for legislation that benefits only them.
“These Uncle Toms need to be publicly shamed. The legislation should benefit the whole industry, not just a few companies.”
Arthur called for no new laws against crypto fraud or theft, because he truly believes that our existing laws are more than enough. But he pointed out the importance of convincing crypto holders to become single-issue voters.
“The hard work isn’t raising money; it’s getting crypto holders to vote for their wallets,” he said. That’s what crypto lobbyists should be focused on.
He also suggested that industry elites like Brian Armstrong and the Winklevoss twins could help by collecting digital signatures in support of the proposed legislation.
“Let politicians know crypto holders are serious about change,” Arthur said. “If we don’t act now, we’ll be watching the world pass us by,” he warned.
Reporting by Jai Hamid
