Arthur Hayes Calls CLARITY Act ‘Nonsense’ as Bitcoin Tops $80K

Bitcoin reclaimed the $80,000 level after two developments that typically signal market stress: a Senate vote that stalled a major crypto‑regulation bill and a Federal Reserve rate hike. In a post on X dated September 18, BitMEX co‑founder and Flop Labs CEO Arthur Hayes used the price move to argue that monetary policy, not legislation, drives demand for financial assets.

Rate Hike vs. Crypto Regulation

Hayes quoted the price action, noting that Bitcoin rose to $80,935 after trading near $76,400 the day before and was at $81,253 when the article was written. He attributed the surge to short‑covering, with roughly $192 million of leveraged positions liquidated in an hour, including more than $183 million in shorts.

Rather than focusing on the stalled Digital Asset Market Clarity Act (H.R. 3633), Hayes highlighted the Federal Open Market Committee’s decision on September 16 to raise its target range by 25 basis points to 3.75 %–4 % and to increase the interest rate on reserve balances to 3.90 %. He argued that higher rates increase returns on cash and reserves, giving wealthy investors additional income that can be redeployed into assets such as stocks and Bitcoin.

Hayes’s Market Outlook

Hayes previously projected a Bitcoin trading range of $60,000–$70,000, with a possible downside to $50,000, before an anticipated “government response to an artificial intelligence credit collapse” could push the price toward $1 million. He framed both the short‑term rally and the longer‑term target around liquidity flows rather than regulatory outcomes.

Status of the CLARITY Act

The Senate rejected cloture on the Digital Asset Market Clarity Act of 2025 on September 15, voting 49‑50. The motion fell short of the 60 votes needed to advance the bill, leaving it on the calendar for possible future consideration. The proposal would create a federal market structure for digital assets and allocate oversight between the SEC and the CFTC.

Hayes’s comments suggest that, in his view, monetary policy can temporarily outweigh the impact of regulatory delays, though he also warned of potential downside risks before the envisioned seven‑figure Bitcoin scenario materializes.