According to Michael Saylor, previously prominent crypto players’ bankruptcy is “sad” but “useful,” although industry monitoring is still required.
According to MicroStrategy co-founder Michael Saylor, high-profile crypto bankruptcies and a substantial price collapse are necessary evils to help the market thrive, but tighter regulation is required.
Saylor spoke on prospective US crypto legislation following FTX‘s bankruptcy in a February 3 appearance on CNBC’s Squawk on the Street, saying:
“The crypto meltdown was painful in the short term, but it’s necessary over the long term for the industry to grow up.”
He said that the business “has some wonderful ideas,” meaning the Bitcoin Lightning Network, but others in the field “irresponsibly apply those good concepts.”
Saylor believes the crypto industry sneeds guidance from businesses with lengthy histories in traditional financial markets and involvement from regulators, particularly the US Securities and Exchange Commission (SEC).
“[The industry] need adult supervision. It requires Goldman Sachs, Morgan Stanley, and BlackRock to enter the industry. Congress must provide clear guidelines. The SEC must establish clear ground rules.”
According to Saylor, the “meltdown” educated people on crypto while also exposing that it’s “time for the world to offer a constructive, transparent framework for digital assets” so the financial system can progress “into the twenty-first century.”
Saylor also commented to Charlie Munger, vice chairman of insurance and investment business Berkshire Hathaway, stating the 99-year-old investing veteran should learn Bitcoin.
On February 1, Munger stated that cryptocurrency is “not a money, not a commodity, and not a security,” instead referring to it as “gambling” and saying that the United States should “clearly” pass legislation to prohibit cryptocurrency.
Saylor agreed that Munger’s crypto-criticism wasn’t “completely off,” but that there are “10,000 crypto tokens that aren’t gambling,” and that “Charlie and the other critics, they’re members of the Western elite and they’re constantly prodded for an opinion on Bitcoin, and they haven’t had the time to study it.”
He said that if Munger spent “100 hours researching” Bitcoin, “he would be more optimistic about Bitcoin than I am.”
Saylor cited emerging nations, including Lebanon, Argentina, and Nigeria, as having solid crypto adoption rates and application cases ranging from inflation hedging to remittances.
“I’ve never really met someone […] that spent some time to think about it that wasn’t enthusiastic about Bitcoin.”
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