At the Bitcoin 2023 conference in Miami, Michael Saylor – Executive Chairman of MicroStrategy, a Bitcoin-bullish software company, shared his views on Bitcoin adoption as a Treasury Reserve asset and its regulatory position in the US. Saylor discussed the lack of clarity around crypto regulation in the US and questioned if it was by design. He also shared his thoughts on how regulators view digital assets.
According to Saylor, regulators are opposed to stablecoins as they allow billions of US dollars to circulate in “dark pools,” evading controls of the banking system and sanctions. Saylor believes regulators have concluded that most crypto tokens are unregistered securities manipulated by their issuers who haven’t disclosed assets properly. This aligns with the SEC Chairman’s views, Gary Gensler, who has publicly labeled Bitcoin as a commodity.
Saylor said, “The meltdown of FTX was a catalytic event that caused the regulators to decide that crypto exchanges, crypto securities, and cryptocurrencies that imitate the dollar are not really consistent with a stable world financial system.” The US government has launched a multi-front attack on the crypto industry since FTX fell apart. Coinbase responded by compelling the SEC to respond to its request for clearer crypto regulations, which the SEC now wishes to strike down.
While Bitcoin doesn’t face the same regulatory threats, Saylor notes there are still milestones to overcome on its way to larger institutional adoption. Accounting is one of them as Bitcoin is transitioning from using an “indefinite intangible” to a “fair value” accounting framework. Another hurdle is the “crypto confusion” where companies perceive Bitcoin as the rest of the crypto market. Saylor believes Bitcoin will benefit once regulators clean up the crypto industry, which will enable more conservative investors to invest in the digital asset.
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