- Michael Saylor argued that regulators demonstrate a lack of support and aim to hinder crypto companies.
- Saylor, a Bitcoin maximalist, expressed confidence in Bitcoin’s continued dominance.
- The entrepreneur also explained his belief that centralized exchanges will remain relevant in the future.
In a recent interview on Bloomberg, Michael Saylor, CEO of MicroStrategy, shared his perspective on the regulatory landscape for cryptocurrencies, particularly Bitcoin. MicroStrategy Incorporated is a company based in the United States that offers business intelligence (BI), mobile software, and cloud-based services.
Saylor expressed his belief that regulators, including Gary Gensler at the U.S. Securities and Exchange Commission (SEC), are demonstrating a lack of support and a desire to hinder the progress of crypto companies.
According to Saylor, MicroStrategy has maintained a clear stance since 2020, considering Bitcoin to be the only institutional-grade digital commodity in the crypto industry.
Saylor emphasized that regulators do not see a viable future for other cryptocurrencies, such as stablecoins or altcoins. Additionally, Saylor claimed that regulators are not favorable toward crypto derivatives or most crypto tokens, and they perceive crypto exchanges as having limited scope, primarily for trading and holding pure digital commodities like Bitcoin.
When asked about the future of exchanges in the U.S., given the potential limitations imposed by regulators, Saylor presented a different viewpoint. He acknowledged the confusion caused by the multitude of cryptocurrencies and crypto securities vying to be the next Bitcoin or a better alternative.
However, Saylor expressed confidence that the public is gradually realizing that Bitcoin is the dominant asset in the space. He anticipates that crypto exchanges would eventually align with this perspective and adapt their business models accordingly, particularly if Bitcoin’s value continues to rise significantly.
Regarding the potential shift away from centralized exchanges towards cold wallets or other forms of custody, Saylor emphasized the crucial role of exchanges in facilitating the acquisition and safekeeping of Bitcoin. As institutional investors, pension funds, insurance companies, and banks increasingly enter the space, he believes there will be a growing need for exchanges to provide custodial services.
Saylor highlighted positive developments such as accounting treatment, upcoming halving, increased hash rate, and regulatory clarity, which he believes are laying the foundation for the next bull run in Bitcoin. The US remains quite unclear on its stance on cryptocurrencies. With the SEC suing major crypto players and calling numerous cryptocurrencies securities, the crypto community in the nation is demanding clarity.
When asked about MicroStrategy’s approach to accumulating Bitcoin and its outperformance compared to exchange-traded products (ETPs) like Bito and Grayscale, Saylor explained that, as an operating company with a profitable software business, MicroStrategy can channel its cash flows into Bitcoin. This strategy allows institutional investors to gain exposure to Bitcoin without incurring additional fees and enables MicroStrategy to generate a yield when possible.
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