Bitcoin Could Reach New Highs as GENIUS Act Boosts Stablecoins 10%

Arthur Hayes, the former CEO of BitMEX and current Chief Investment Officer of Maelstrom, has shared his insights on the current state of the cryptocurrency market, focusing on stablecoins, geopolitical factors, and the potential for Bitcoin to reach new all-time highs. Hayes believes that the current bull market is far from over, and he has laid out a checklist for what he sees as the necessary conditions for Bitcoin to reach new peaks.

Hayes sees the GENIUS Act as effectively putting US stablecoin issuance in the hands of banks or heavily regulated entities. His logic is that SLR relief opens institutional gateways, bank-regulated stablecoins improve trust and stability, and geopolitical calm signals a renewed risk-on environment. Hayes believes that all of these factors combined set the stage for new Bitcoin all-time highs.

On June 17, the US Senate passed the GENIUS Act in a bipartisan vote. The law frames dollar-backed stablecoins as legitimate payment instruments and defines tight reserve and disclosure rules. With this, banks get to issue stablecoins above the $10 billion cap, while smaller issuers may operate under state licensing. This framework suits vendors like Circle, but critics worry it will embed stablecoins too deeply into quasi-bank roles.

The SLR matter Hayes mentioned is part of an ongoing debate about exempting stablecoin reserves from SLR counts. Supporters say it frees banks to hold more liquidity-heavy assets, while the opponents cite systemic risk implications. Hayes notes the progress toward excluding UST (US Treasury) stablecoins from the Supplementary Leverage Ratio (SLR) regulation, which would reduce capital charges for banks holding stablecoins. This could unlock more bank involvement, increasing liquidity and institutional support for crypto, but only if US regulators finalize it.

Hayes also touched on the current geopolitical situation, saying that world leaders are pretending the conflict is finished so investors should too. He advises investors to adopt a mindset similar to that of certain world leaders, emphasizing the importance of a strong and assertive approach in navigating the complexities of the global economy. He suggests that regulatory shifts and geopolitical tensions could drive Bitcoin's price higher, as investors seek safe havens in the face of uncertainty.

Hayes' bullish outlook on Bitcoin is based on his belief that the cryptocurrency is still in the early stages of its adoption cycle. He sees the $110,000 range as a threshold for a serious move higher, and he believes that Bitcoin could reach new all-time highs in the coming months. Hayes' predictions are based on his extensive experience in the cryptocurrency market, and his insights are highly regarded by many investors.

Hayes' comments come at a time when the cryptocurrency market is experiencing significant volatility. However, Hayes remains optimistic about the long-term prospects for Bitcoin, and he believes that the current pullback is a natural part of the market cycle. He advises investors to stay focused on the long-term trends and to avoid getting caught up in short-term price movements.

Hayes' insights on the cryptocurrency market are based on his extensive experience and his deep understanding of the underlying technologies. He believes that the current bull market is far from over, and he sees significant potential for Bitcoin to reach new all-time highs in the coming months. Hayes' predictions are based on his analysis of the market trends and his belief in the long-term potential of Bitcoin.