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Michael Saylor Pushes for Clear Crypto Rules in Second-Quarter Call
Key Takeaways
- Michael Saylor urged US regulators to clearly define digital assets like tokens, securities, and commodities;
- He warned that without a proper framework, uncertainty will persist around who can issue what type of crypto asset;
- Saylor said clearer rules could let millions of businesses tokenize assets quickly and affordably.
Michael Saylor, executive chairman of Strategy, is asking US lawmakers and regulators to clearly define how digital assets are categorized.
During his company’s second-quarter earnings call on July 31, he stressed the need for clear rules that explain what counts as a digital security or commodity, and when it is legal to turn a security into a token.
Saylor said during the call, "My opinion is it would be beneficial to the market if they nail down the digital assets taxonomy".
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He added, "Under what circumstances can you tokenize a security? What is digital security? If they can clarify a digital commodity, what is an asset without an issuer versus a digital token?"
Saylor warned that without clearer definitions, confusion will remain about who can issue which assets.
He gave an example of what simpler rules could make possible:
In the ideal world, 40,000,000 businesses would be able to issue a token in four hours for $40.
On July 30, a White House group focused on digital asset markets urged federal agencies to speed up work on rules for custody, trading, and record-keeping.
SEC Chair Paul Atkins noted on July 31 that many companies building token-based systems are doing so outside the US due to the current regulatory environment. He said, "Companies are lined up at our doors with requests to tokenize".
Recently, Strategy introduced a new plan to raise money for its ongoing cryptocurrency investments. What does the plan include? Read the full story.