TechFlow News: On May 7, Arthur Hayes, co-founder of BitMEX, stated at Consensus 2026 that the cryptocurrency industry does not need regulation—and regulation is largely irrelevant to Bitcoin’s value proposition. Only two factors fundamentally determine Bitcoin’s price: technical reliability and fiat liquidity—with the latter being the true driver. Every round of monetary expansion—from Obama-era quantitative easing, to Trump’s first-term “helicopter money,” to Treasury Secretary Yellen’s release of approximately $2.5 trillion in reverse repurchase funds during the Biden administration by replacing long-term debt with short-term bonds—has closely coincided with major Bitcoin price surges.
Although the Trump administration has signed cryptocurrency-related legislation and signaled regulatory clarity, Bitcoin’s price has still declined roughly 25% over the past ~18 months—demonstrating that regulatory tailwinds do not directly drive price appreciation; liquidity remains the root cause. Hayes also noted that the Trump family’s prior experience with de-banking, asset freezes, and numerous lawsuits helped them recognize Bitcoin’s value as an asset outside state control. If Bitcoin ultimately becomes just another derivative on bank balance sheets, it will lose its essential meaning.
