Key highlights:
- Michael Saylor believes that the Senate’s failure to pass the CLARITY Act is a good development
- The current delay could help the industry to grow and expand more under existing rules
- The regulators have already taken initiatives to launch clear rules in the absence of the crypto bill
The CLARITY Act might have hit a roadblock, but Strategy founder Michael Saylor views it as a positive development for the crypto industry. Saylor believes that the crypto bill’s failure to pass the Senate could give the industry more room for growth and innovation. According to him, the regulators still have time to create new rules for the space, turning restrictions into law.
Why does Michael Saylor think that CLARITY Act setback is a win?
According to Strategy founder Michael Saylor, the crypto industry may see better developments in the absence of the CLARITY Act. He urged crypto companies to work with federal regulators to create new rules without accepting restrictions included in the bill.
For him, the rejection of the CLARITY Act is a “positive inflection point” for the industry. On Saturday, Saylor said in an X post:
“We have an administration willing to modernize financial markets. We should use the next two years to put better financial products into people’s hands. Our safest path forward is to create products that delight customers and deploy them broadly. Lower costs, easier access, useful services, and greater control over money give people a direct interest in preserving innovation. The strongest constituency we can build is a public that benefits from what we create.”
Saylor raises concerns over crypto bill restrictions
Further, Michael Saylor noted that the crypto industry should not be in a hurry to embrace the CLARITY Act just because it brings regulations. Instead, companies should study whether the rules could create long-term restrictions in the sector. He believes that if a restriction becomes a part of the federal law, it cannot be undone. Thus, he recommends rules that could leave enough space for crypto companies to build and expand. His words read,
“Legal certainty matters. So does the freedom to compete. A law can make a restriction durable just as easily as it can make a right durable. Before celebrating permanence, we should examine what we are making permanent.”
One of the restrictions Michael Saylor highlighted is the treatment of stablecoins. During the September compromise, lawmakers made changes to certain provisions of the CLARITY Act, including rules around stablecoins. Under the new rules, certain covered providers would not be allowed to pay customers simply for holding payment stablecoins.
How will crypto grow without the CLARITY Act?
As per Michael Saylor’s views, the crypto industry has plenty of room to build new products under existing laws. Thus, he pointed to several areas where companies could continue establishing their services without waiting for the CLARITY Act to proceed.
For example, Saylor highlighted the role of Bitcoin in areas such as bank custody and BTC-backed lending. He added that Strategy’s STRC preferred stock could have more use cases through wider distribution, tokenization, and collateral applications. In addition, MSTR could also have new trading venues, longer market hours, and easier transfers.
Moreover, Saylor referred to crypto platforms such as Coinbase, which could bring different financial services together. Via its vision of the “Everything Exchange,” Coinbase is offering multiple services beyond crypto trading including securities, custody, payments, and financing.
US regulators are already moving forward
Despite the Senate’s failure to pass the crypto bill, US regulators, including the SEC and CFTC, have already taken initiatives to bring the much-needed clarity to the sector. The SEC granted conditional relief for on-chain trading of certain stocks on September 17. At the same time, CFTC Chair Michael Selig stated that the agency would use its power to launch new crypto rules.
These developments, according to Michael Saylor, suggest that the crypto market can progress without the CLARITY Act under existing rules. For 2027 and 2028, Saylor believes that the priority should be expanding crypto products and creating lasting rules from temporary regulatory relief.
Source:: Michael Saylor Says CLARITY Act Setback Could Be Good for Crypto