Co-founder of Bitmex Arthur Hayes believes that the American legislation who wants to set up a framework for Dollar-Pegged Stablecoins will be Bullish for Bitcoin (BTC) and large banks.
In a new essay, Hayes says that the guidance and establishment of national innovation for the American Stablecoins (Genius) Act will unlock trillions of dollars in liquidity and stimulate markets.
According to Hayes, the Genius Act, which was hired in the US Senate last month and is now waiting to be submitted on the floor of the American House of Representatives, to be able to issue Stablecoins in Big-to-Fail (TBTF) and to unlock up to $ 6.8 trillion in liquidity.
TBTF banks, including megabanks such as JPMorgan Chase, Bank of America, Citigroup and Wells Fargo, are major financial institutions that are so crucial for the economy that their failure would be catastrophic for the global financial system.
In the light of the Genius Act, Hayes says that the best bet is not investing in non-Bancaire Stablecoin expenditure such as Circle.
“The real Stablecoin game does not gamble on crispy fintechs such as Circle-It is understanding that the US government has just over TBTF banks the launch keys to a liquidity of several dollars that Bazooka disguised as ‘innovation’ …
Instead, go bitcoin for a long time. Go for a long jpmorgan. Forget the circle. “
According to the co-founder of BitMex, the increased liquidity that results from the allowance of banks to give stablecoins, as well as other tax policy measures, would send “Bitcoin that can send 10x to $ 1 million pumps”. “
The shares of the Megabanks, on the other hand, were able to rise almost 3 times as a result of the brilliant action, per Hayes.
“If we have the average price-gain ratio of the TBTF banks on 14.41x and that multiplication of the cost savings and stablecoin nim (net interest rate margin), it comes to $ 3.91 trillion. The current market capitalization of the STABTF Banks is about that means that TBTF Banks means that means that Stablfo Banks means that that means that STALLALFO Banks is that that means that Stablf-Banks means that that means that Stablfo Banks is that that means that is the STALLFO-Banks. pumps through 184%. “
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