BitMEX co-founder argues new Federal Reserve tool quietly expands money supply and benefits scarce assets like Bitcoin
Arthur Hayes, co-founder of BitMEX, has raised concerns that the U.S. Federal Reserve’s newly introduced Reserve Management Purchases (RMP) program is effectively a rebranded form of money printing. In a recent macro essay, Hayes argued that while officials present RMP as a technical liquidity measure, its mechanics closely resemble quantitative easing and carry similar economic consequences.
How the RMP Program Works
Under the RMP framework, the Federal Reserve purchases short-term U.S. Treasury bills to ensure adequate reserves in the banking system. Officials have emphasized that the initiative is designed to stabilize money markets rather than signal a shift in monetary policy. Initial purchases are expected to total around $40 billion in the first month, with the program potentially extending for several months.
Hayes contends that by recycling liquidity through money markets, the Fed is indirectly financing government spending while avoiding the political backlash associated with traditional quantitative easing.
Impact on Inflation and Asset Prices
According to Hayes, expanding fiat liquidity favors scarce assets such as Bitcoin, gold, and silver, which tend to appreciate faster than the growth of the money supply. He argues that while asset holders benefit, individuals without significant investments face declining purchasing power as prices rise faster than wages.
Hayes warned that sustained money creation weakens the link between productive output and economic reward, accelerating wealth concentration and social inequality.
Despite a recent interest rate cut, mixed messaging from policymakers has tempered expectations of a sustained risk-asset rally. Market-based forecasts currently suggest a pause in further rate cuts in the near term, reinforcing uncertainty around liquidity conditions heading into 2026.
Hayes’ critique highlights a growing debate over whether modern liquidity tools are simply quantitative easing under a different name. For investors, the argument reinforces why monetary expansion narratives continue to support long-term interest in Bitcoin and other hard assets.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.