Saylor Urges Industry to Leverage Existing Regulations, Rejects CLARITY Compromise Text

Michael Saylor believes that the cryptocurrency industry should leverage existing regulatory space to promote the implementation of truly useful digital financial products. Rather than waiting for a new law, he suggests using existing regulations from the SEC, CFTC, U.S. Treasury, and banking regulators to support innovative rules.

The CLARITY compromise text has been criticized by Saylor, who argues that it restricts service providers from issuing rewards to customers based solely on holding payment-type stablecoins, except for qualifying activity rewards. He also points out that the plan stipulates that if the Treasury determines that community banks are experiencing large-scale and adverse deposit outflows, it can restrict certain reward mechanisms.

Saylor advocates for a free market for financial innovation, with clear rules, open to new participants, and ample competition, allowing customers to choose freely. He believes that protecting ownership, requiring honest disclosure, and severely punishing fraud are essential components of this framework.