The MicroStrategy head delved into the debate on the absence of a clear regulatory framework in the US. Michael Saylor confessed that the continued reliance on regulations through enforcement is orienting the US crypto industry to a Bitcoin-oriented future.
Saylor lamented the enforcement actions imposed by the regulators are orienting the crypto community to accept the prominent role of Bitcoin.
Laying Groundwork to Trigger Bitcoin Bull Run
In his Tuesday, June 13 interview with Bloomberg journalist, the chair of the business intelligence software company, Saylor, said that pronouncements issued by the Securities and Exchange Commission (SEC) would have a meaningful impact. In particular, the executive chairperson indicated that the enforcement actions and declarations are laying the groundwork that will trigger the Bitcoin bull run.
Saylor laments the absence of a clear regulatory stance on crypto assets. As such, the founder of the business intelligence firm declared that regulatory clarity would fuel Bitcoin adoption. Its accomplishment would eliminate the confusion and anxiety that keeps institutional investors at bay.
Blurred Treatment of Cryptos as Security and Commodity Engulfs the Community
Saylor illustrated that confusion engulfing the US crypto community arises from the blurred treatment of digital assets as either security by the SEC or commodities by the Commodity Futures Trading Commission (CFTC). Similarly, institutional investors perceive the confusion as driven by the absence of a legitimate path.
Institutional investors perceive the crypto exchanges as bearing the greatest burden of rapid enforcement actions. Instead, Saylor suggests that the regulatory framework should facilitate crypto exchanges executing the trade and exercising ownership over digital commodities like bitcoin.
Saylor Disappointment in SEC’s Enforcement Actions
Saylor portrays little support for the SEC’s enforcement actions against Coinbase and Binance last week through charges of the two leading centralized crypto exchanges. In particular, he expressed disappointment in the SEC suing Coinbase, claiming it listed securities without seeking registration as an exchange platform.
Saylor’s reference to the SEC enforcements, though noncommittal, illustrates a disheartening feeling towards its stance. Particularly, the security watchdog under the stewardship of Gary Gensler as its chair classifies a dozen tokens as security.
While the SEC has in the past hesitated to comment on specific coins as securities, the court documents filed while charging the leading crypto exchange in the US break the trend. Saylor considers the move as attracting criticism across the crypto industry and Congress.
Saylor observes that the SEC submission to the court excluded Bitcoin from the security classification. He adds that the leading crypto by market capitalization meets sufficient decentralization criteria to qualify as a commodity.
Igniting Bitcoin 10X Value
Saylor considers that the possibility of the SEC imposing a regulatory crackdown on other tokens and stablecoins would have far-reaching consequences. It would restore Bitcoin’s dominance to above 80% of the crypto market.
Saylor anticipates the public to realize the inherent value of Bitcoin as possessing the institutional profile of investable assets. As such, he forecasts that such discovery would logically push its value 10X.
Saylor’s positive outlook on Bitcoin portrays optimism considering that MicroStrategy is among the leading holders of Bitcoin. Presently, it possesses 140000 bitcoin acquired at an average pricing of $29803. The company is yet to expand to other cryptos as it rules out all altcoins as unable to meet the institutional grade for investable assets.
Saylor projection is optimistic of Bitcoin benefitting from the series of enforcement actions undertaken by the SEC. Also, he has termed Ethereum (ETH) security in the past. He observes that though ETH ranks second by market capitalization, it runs through ICO and premine besides the management team.