Arthur Hayes, co-founder of BitMEX, publicly warned that bank-backed stablecoins would “outcompete” Circle’s USDC.
On May 23, 2025, he posted on X (formerly Twitter), “Bye bye Circle. Thanks for playing,” in response to media reports of Wall Street’s biggest banks planning a joint stablecoin.
Arthur Hayes argued that banks’ regulatory advantages, capital resources, and trust in the traditional financial system could erode USDC’s market share.
Source: X
He noted that the GENIUS Act, which would require stablecoin issuers to maintain 100 percent reserves and obtain a federal license, would give banks a clear path to issuance, potentially sidelining non-bank issuers like Circle.
USDC’s slight de-pegging proved that crypto-native issuers remain vulnerable when perceived market power shifts toward regulated entities.
Arthur Hayes Warns Amid Wall Street’s Stablecoin Plans
According to The Wall Street Journal, JPMorgan Chase, Bank of America, Citigroup, and
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