U.S. Treasury Flexes Muscle as Crypto Markets Tremble

Regulators wield old-school rulebooks to tame the wild west of digital assets—because nothing says ’innovation’ like a 20th-century playbook.

Behind the scenes: Treasury’s moves ripple through exchanges, stablecoins, and DeFi protocols. Market makers adjust strategies overnight when Janet Yellen’s team even whispers ’enforcement.’

The irony? The same institution that can’t track its own spending now polices blockchain’s immutable ledgers. Talk about job security for bureaucrats.

The Treasury’s Prominent Strategies

Hayes stated, “The real show is in the Treasury Department, ignore the Fed, it doesn’t matter.” In his view, the current monetary policy has created waves of liquidity explosions. Under Bessent’s leadership, maneuvers are focused on balancing American debt. Consequently, market participants monitor liquidity fluctuations according to indicators set by the Treasury.

Hayes argued that capital controls are effective rather than strict regulations. He remarked, “The true policy is capital controls.” He stressed that the lack of control over American expenditures would accelerate the Flow of increasing liquidity into the cryptocurrency market. Hayes also mentioned that steps like tax measures and capital restrictions need consideration. According to him, political actors do not prefer austerity measures.

U.S.-China Trade War: Symbolism, True Balance, and Risks

Hayes noted that despite the official signing, the agreement does not present a fundamental change. In his opinion, President Trump’s effort to prove toughness towards China aligns with Xi Jinping’s gesture to show resistance to the West. Consequently, no fundamental difference in the flow of goods and services will occur soon.

China’s strategy of purchasing American assets will continue. Hayes mentioned, “Even if they have to conceal how much they buy, it’s mathematically impossible for them to stop.” In conditions of excessive liquidity, foreign investment restrictions might emerge, creating new trends in the crypto market.