Summary:
- MicroStrategy CEO Michael Saylor believes Bitcoin will benefit from the regulatory clarity initiated through the crypto bill by Senators Lummis and Gillibrand.
- Mr. Saylor says that such regulatory clarity will facilitate and accelerate the participation of traditional institutional investors.
- The proposed crypto bill sets to streamline hurdles such as stablecoins, taxes, DeFi, DAOs, and the jurisdictions of both the SEC and CFTC.
MicroStrategy CEO Michael Saylor has provided valuable insights on the proposed bill by Senators Lummis and Gillibrand on the regulation of digital assets in the United States.
According to Mr. Saylor, such regulatory clarity as the bill initiated by the two senators will benefit Bitcoin and further facilitate the increased participation of traditional financial institutions in the industry, further accelerating growth. He said:
Bitcoin will benefit from regulatory clarity, which will facilitate & accelerate the participation of traditional banks, public companies, and institutional investors, growing the entire digital assets industry.
What the Crypto Bill is All About
Earlier today, the crypto-verse was rocked by a leaked version of the proposed bill by Senators Cynthia Lummis and Kirsten Gillibrand.
However, an official version of ‘The Responsible Financial Innovation Act’ has since been released and proposes the following in terms of crypto regulations.
- Creating a clear standard that will determine which digital assets are commodities and which are securities further provides clarity for businesses and regulators.
- Setting clear definitions connected to the digital asset industry.
- Hand over regulatory clarity over digital asset spot markets to the CFTC because most digital assets are much more similar to commodities than securities.
- Outlines and creates requirements for stablecoins that will protect consumers and markets, boosting their use for faster payments.
- Creates an advisory committee to develop guiding principles, empower regulatory agencies and advise lawmakers on fast-developing technology. The committee will be composed of various stakeholders, ‘including industry, advocacy groups, federal and state regulators, and subject matter experts knowledgeable in consumer protection, consumer education, financial literacy and financial inclusion.’
- Digital asset providers to provide disclosure requirements to help consumers understand the product, thus making more informed decisions when engaging with digital assets.
- Kick-start a study on digital asset energy consumption
- Direct the CFTC and SEC to study and report on self-regulatory organizations (SRO).
- The CFTC and SEC consult with the Treasury and National Institute of Standards and Technology to develop comprehensive, principle-based guidance relating to cybersecurity for digital asset intermediaries.
- Facilitates a regulatory sandbox for state and federal regulators to collaborate on innovative financial technologies.
- Creation of a workable structure for the taxation of digital assets.
- Directing the Government Accountability Office (GAO) to conduct an analysis of the potential opportunities and risks associated with investing retirement savings in digital assets and to report its findings to Congress, Treasury, and the Department of Labor.
- Directing the Office of Management and Budget, along with the Cybersecurity and Infrastructure Security Agency, the Director of National Intelligence, and the Defense Department, to conduct an information security study around the digital yuan, China’s central bank digital currency.
The United States Is the Global Financial Leader
Senator Lummis further reiterated the need for the United States to remain the global leader in financial innovation. She said:
The United States is the global financial leader, and to ensure the next generation of Americans enjoys greater opportunity, it is critical to integrate digital assets into existing law and to harness the efficiency and transparency of this asset class while addressing risk.
My home state of Wyoming has gone to great lengths to lead the nation in digital asset regulation, and I want to bring that success to the federal level. As this industry continues to grow, it is critical that Congress carefully crafts legislation that promotes innovation while protecting the consumer against bad actors.
