Key Takeaways
- Michael Saylor met SEC’s Crypto Job Power to debate Bitcoin and digital asset regulation.
- SEC classifies Bitcoin as a ‘digital commodity’ resulting from its decentralized nature.
- Proposed laws goal to restrict compliance prices and broaden digital markets considerably.
MicroStrategy founder Michael Saylor met with the U.S. Securities and Trade Fee’s (SEC) just lately established Crypto Job Power on February 21, specializing in the regulatory framework for Bitcoin and different digital property.
Led by SEC Commissioner Hester Peirce, the duty power goals to make clear regulatory pointers and create standardized classifications.
Asset classifications
A central subject was the SEC’s classification of digital property, particularly defining Bitcoin as a “digital commodity,” resulting from its decentralized nature and reliance on mining energy.
Different classifications mentioned included digital securities, digital currencies, digital tokens, and NFTs, every carrying distinct regulatory implications.
Regulatory pointers
The duty power additionally addressed clear pointers for asset issuers, exchanges, and homeowners.
Issuers can be answerable for truthful disclosures, exchanges for asset custody and shopper protections, whereas asset homeowners should adjust to native legal guidelines.
The framework emphasised accountability, stating explicitly:
Nobody has the best to lie, cheat, or steal.
Compliance framework
In response to the SEC’s proposed framework, compliance prices for digital asset issuance mustn’t exceed 1% of the asset’s complete worth, with annual upkeep capped at 0.1%.
Regulators would delegate compliance oversight primarily to exchanges somewhat than straight regulating each issuance.
Market projections
The SEC predicted that clear laws might considerably broaden cryptocurrency markets from $25 billion to $10 trillion and instructed that establishing a strategic Bitcoin reserve might probably generate $16 trillion to $81 trillion for the U.S. Treasury.