MicroStrategy founder Michael Saylor advocates for Trump-backed 'strategic bitcoin reserve' in proposal to set crypto industry standards
Quick Take In his “Digital Asset Framework” published on Friday, MicroStrategy founder Michael Saylor supports the idea of creating a strategic bitcoin reserve to help eliminate the national debt. The document also argues for creating a universal taxonomy and set of industry standards for the wider crypto industry.
MicroStrategy founder Michael Saylor has backed President-elect Donald Trump’s strategic bitcoin reserve in a digital asset policy proposal published on Friday. The so-called “ Digital Assets Framework ” also lays out a plan for the U.S. to support industry growth, set standards for compliance and communication, as well as set rights for crypto asset holders and companies.
“By establishing a clear taxonomy, a legitimate rights-based framework, and practical compliance obligations, the United States can lead the global digital economy,” Saylor wrote in his proposal. “A capital markets renaissance fueled by digital assets will unlock trillions in wealth, empower millions of businesses, and solidify the US dollar as the foundation of the 21st-century digital financial system.”
Saylor became one of the most visible Bitcoin backers after his firm began purchasing the asset in 2020, in a bold bet that U.S. monetary and fiscal policy would drain the dollar's value. MicroStrategy, which sells business intelligence software, is now the single largest corporate bitcoin holder, with an estimated $42.6 billion stockpile.
Although Saylor is known as a Bitcoin maximalist — someone who believes there is an insurmountable gulf between Bitcoin and other blockchains — his proposal argues for creating universal standards for “ digital assets (beyond Bitcoin)” and strengthening the U.S. dollar’s hegemonic position as the world’s reserve currency.
Implementing his plan, which includes creating a “universal” taxonomy and set of standards, would “position America as the global leader in the 21st-century digital economy” and neutralize the national debt.
Plan specifics
Under his proposed taxonomy, Saylor defines a “digital commodity” as “an asset without an issuer, backed by digital power,” citing Bitcoin as an example. He also classifies assets “with an issuer,” including a “digital security” like tokenized equity or debt, a “digital currency” that is “backed by fiat” and a “digital token,” which is fungible and offers utility. NFTs and tokens backed by “physical assets” like gold and oil have their own delineations.
In addition to classifying different cryptocurrencies, Saylor argues for a “robust framework of rights and responsibilities” to be applied to issuers, exchanges and other participants. This includes the baseline rights “to create and issue digital assets” as well as custody, trade and transfer these assets.
The responsibilities Saylor advocates largely center around public disclosures and complying with local laws. “No one has the right to lie, cheat, or steal. All participants are civilly and criminally responsible for their actions,” Saylor writes.
Meanwhile, in a bid to drive “efficiency and innovation,” he also argues that compliance costs related to issuing a token should be limited to 1% of a firm’s assets under management and no more than 10 basis points annually to maintain an asset. This could help drive “the cost of issuance from $10–100 million to $10–100 thousand,” he writes, and reduce the time to launch a token to a matter of minutes rather than years.
Neutralizing the debt
To some extent, Saylor wants the U.S. to be at the center stage of the digital economy because he wants the U.S. to remain at the center stage of the global economy. He argues implicitly that becoming the de facto crypto hub is key for maintaining the hegemonic status of the U.S. dollar, which he has previously referred to as a “melting ice cube.”
To this end, Saylor says the U.S. should position the dollar as the “global reserve digital currency” by growing the stablecoin market from a market capitalization of $25 billion to $10 trillion, thereby “creating massive demand for US Treasuries.” He also calls for U.S. investors to “capture the majority of the wealth” of the growing crypto industry.
Finally, Saylor advocates for creating a “strategic bitcoin reserve,” a policy many U.S. lawmakers, including Sen. Cynthia Lummis and President-elect Donald Trump, have supported. While Saylor does not say specifically how many tokens the U.S. Treasury might purchase, he did argue that it should build a reserve “capable of creating $16–81 trillion in wealth” — (at current prices, that would equate to about 800 million BTC, which is more than the current supply cap of 21 million BTC would allot, at the high end).
Saylor argues that these policies could wipe out the $36 trillion national debt, as measured by the Treasury.
Trump, who made a campaign promise not to sell the approximate 198,000 bitcoins the U.S. government has acquired primarily through criminal seizures, has recently come out in support of establishing a bitcoin reserve.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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