Michael Saylor urges US banks to custody and lend Bitcoin, and predicts digital assets could reach $100 trillion.
Michael Saylor is advocating for US banks to offer Bitcoin (BTC) custody and lending services to customers. He additionally forecasts that the digital asset sector could expand to $100 trillion.
Saylor serves as chairman of MicroStrategy (now called Strategy), a software firm primarily recognized for its Bitcoin purchases. He outlined this proposal in a policy statement following his talk at the Bitcoin Policy Institute’s Freedom Tech DC summit this week.
Saylor is pushing for banks to provide custody services, storing Bitcoin for customers. He also seeks to have them extend loans secured by that Bitcoin, subject to transparent and practical regulations.
He contends that international capital regulations are a barrier. The Basel framework establishes global norms for the capital banks must maintain relative to their assets. It assigns the highest-risk crypto assets a 1,250% risk weight.
Saylor points to that 1,250% figure to illustrate the harshness of current rules. He calls on regulators to distinguish among three categories of activity:
Saylor anticipates that bank integration will be a significant growth catalyst. He believes that increased competition among banks for Bitcoin holders will inject new capital into a scarce asset.
MicroStrategy currently assesses financial institutions through its Bitcoin Banking Adoption Index; that index showed a 32% adoption rate among major banks in July.
Nevertheless, large banks are divided on the issue. JPMorgan's chief Jamie Dimon has publicly described Bitcoin as a pet rock, while Strategy CEO Phong Le contends that Dimon supports it behind closed doors.
“The age of Digital Assets and Digital Intelligence needs a bill of digital rights, not a bill of restrictions,” he explained.
Saylor connects this valuation to artificial intelligence (AI). He anticipates that AI agents—software performing tasks for users—will research, negotiate, and make purchases on behalf of their owners.
Such an economy requires money that operates at software pace, continuously, he argues. In contrast, the current financial system relies on human identities and standard business hours.
Saylor asserts that Bitcoin and other digital assets are suited for that environment. He estimates the industry's potential at $100 trillion but does not provide a timeframe for achieving it.
This advocacy comes after a legislative setback. On September 15, the Senate cast a 49-50 vote against moving forward with the CLARITY Act, legislation intended to establish guidelines for US crypto markets.
According to Saylor, the bill placed too much emphasis on limitations. He now believes the most effective route over the next two years goes through the SEC, Commodity Futures Trading Commission (CFTC), Department of the Treasury, and the White House.
In Saylor's framework, the Treasury and banking regulators would establish feasible frameworks for Bitcoin custody and lending. Meanwhile, legislators are hurrying to draft a replacement for the CLARITY Act.
Share to
Disclaimer: this article comes from third-party media and is provided for reference only. It does not constitute investment advice. Crypto and other financial products carry significant price volatility risk, so please make your own decisions carefully.
BTSE Bhutan has received a full Financial Services License from the GFSO, allowing it to offer regulated digital asset trading and custody in Gelephu…
The IRS issued a notice targeting crypto ETFs that use in-kind redemptions to avoid gains, and also shut down a tax-free stock swap for wealthy investors.
Belarus's first crypto banks are approved and will start operating once accredited by the National Bank.
Senate Democrats found 84% of sanctioned Iran-linked crypto wallets used Tether's USDT; Tether reported $550 million in related freezes.