TLDR

Arthur Hayes predicts crypto bull market will continue until 2028 driven by US stablecoin adoption and regulatory framework
US government plans to redirect $10-13 trillion Eurodollar market through government-controlled stablecoin systems
GENIUS Act passed in July 2025 provides legal framework for payment stablecoins in the United States
DeFi platforms like Ethena and Hyperliquid positioned to benefit from massive stablecoin liquidity inflows
Treasury Secretary Scott Bessent expected to pressure countries globally to adopt US stablecoins for fiscal control

Arthur Hayes, co-founder of BitMEX, has predicted the current cryptocurrency bull market will extend until 2028. His forecast centers on growing stablecoin adoption and regulatory developments in the United States.

Hayes shared his outlook at Tokyo’s WebX conference on August 25, addressing the opening session. His prediction stems from the US government’s strategic push to redirect global dollar flows through stablecoins.

Source: WebX

The former BitMEX CEO believes America’s massive fiscal deficit drives its stablecoin policy ambitions. He explained how Washington targets the $10-13 trillion Eurodollar market for redirection into government-controlled stablecoin ecosystems.

Treasury Secretary Scott Bessent will pressure countries globally to adopt US stablecoins according to Hayes. This diplomatic approach resembles historical currency expansion tactics used by the United States.

Stablecoins offer Washington unprecedented control over offshore dollar deposits previously beyond US oversight. Stablecoin issuers must hold reserves in American banks and purchase Treasury bonds with received funds.

This mechanism provides the government with guaranteed debt buyers while enabling monetary policy control. Hayes explained that through this system, Bessent can bypass the Federal Reserve to influence short-term interest rates.

The passage of the GENIUS Act in July 2025 marked a major milestone for stablecoin regulation. The legislation established a legal framework for payment stablecoins in the United States.

Regulatory Framework Drives Adoption

The Act provides regulatory clarity for private companies issuing stablecoins and encourages further innovation. While critics argue the Act lacks sufficient safeguards against financial instability and fraud, proponents see legitimization of stablecoins.

Beyond the US, other major economies are moving to regulate stablecoins as well. The European Union has implemented the Markets in Crypto-Assets regulation for comprehensive oversight.

Hayes suggests the US is well-positioned to maintain financial leadership through widespread stablecoin adoption. This could enhance the competitiveness of the US dollar in the digital era.

DeFi Platforms Positioned for Growth

The analyst expects stablecoin supply to reach $10 trillion as Fed funds rates drop to 2%. These conditions should sustain the bull cycle through 2028 according to his analysis.

Hayes highlighted four promising DeFi projects: Ethena, Hyperliquid, Ether.Fi, and Codex. These platforms will provide yield opportunities unavailable in traditional banking systems.

Massive stablecoin liquidity will create new investment possibilities across decentralized finance. Social media platforms like Facebook and X will offer dollar accounts to Global South countries.

This development could generate $4 trillion in additional Treasury demand while weakening national currency controls. Hayes described this transformation as a “once-in-a-century market opportunity” comparable to John Rockefeller’s era.

Hayes advised investors to monitor capital flows from centralized exchanges to decentralized platforms. The expanding stablecoin ecosystem will enable innovative financial services previously impossible under traditional banking structures.

The post Why Arthur Hayes Thinks the Crypto Bull Run Will Run To 2028 appeared first on CoinCentral.

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Filed under: News - @ August 25, 2025 6:28 am