Key Takeaways
- Michael Saylor, the chairman and co-founder of MicroStrategy, has published a Digital Assets Framework for the U.S. government that discusses how a robust, industry-led digital asset regulation and establishment of a national Bitcoin stockpile could generate trillions of dollars in wealth for the country.
- The Bitcoin maximalist suggests that a digital asset policy could strengthen the dollar’s position as the global reserve currency and neutralize the $36 trillion national debt while placing America as the global leader in the “21st-century digital economy”.
- Saylor’s proposal also suggested that the Strategic Bitcoin Reserve is capable of generating anywhere between $16 trillion and $81 trillion. It is reported that the U.S. government will accumulate 200,000 BTC over the next five years with the aim of controlling 5% of its total supply.
- The document also discussed other key areas, such as categorizing digital assets, reducing the cost of token issuance, establishing clear rights and responsibilities for market participants, expanding the market to a valuation of $280 trillion, and implementing regulatory oversight that supports innovation and growth.
MicroStrategy co-founder and executive chairman Michael Saylor has proposed a Digital Assets Framework for the United States, which discusses establishing a strategic Bitcoin reserve that he claims has the potential to generate $81 trillion in wealth for the country’s Treasury.
MicroStrategy Posposes Crypto Policy Framework For The U.S. To Adopt
In a December 21 X post, the Bitcoin maximalist and billionaire stated that a strategic digital asset policy can “strengthen the U.S. dollar, neutralize the national debt, and position America as the global leader in the 21st-century digital economy.
His crypto framework categorizes crypto assets into six distinct categories: Digital Commodities – an asset without an issuer; Digital Securities – an asset with an issuer, backed by security; Digital Currency – an asset with an issuer, backed by fiat currency; Digital Token – a fungible asset with an issuer, offering digital utility; Digital NFT – a non-fungible asset with an issuer, offering digital utility; and Digital Asset-backed Tokens – an asset with an issuer, backed by a physical asset.
The proposal aims to establish clear rights and responsibilities for each market participant – token issuers, exchanges, and owners – while emphasizing that none of the stakeholders can “lie, cheat, or steal”.
It also provides a compliance approach that streamlines cost limits with a maximum of 1% of assets under management (AUM) for token issuance and 0.1% annually for maintenance. This is expected to drastically reduce issuance costs from millions to thousands of dollars while expanding market access from 4,000 public companies to 40 million businesses, with an added emphasis on rapid asset issuance. The proposal advocates for industry-led digital asset regulation instead of direct regulatory oversight that prioritizes efficiency and innovation over “friction and bureaucracy”.
Saylor Suggests Strategic Bitcoin Reserve Could Generate $81 Trillion In Wealth For The U.S. Treasury
Saylor’s crypto framework recommends establishing a strategic Bitcoin reserve that is capable of creating $16 to $81 trillion in wealth for the U.S. Treasury, thereby providing a pathway to offset the national debt. He added that this move could strengthen the dollar and boost economic growth by unlocking trillions in value.
Most importantly, the policy document aims to protect and strengthen the dollar’s position as the global reserve digital currency. It also aims to expand the global digital capital markets from $2 trillion to $280 trillion, with U.S.-based investors capturing the majority of this wealth.
Under Saylor’s leadership, MicroStrategy acquired 439,000 BTC over four years as a hedge against inflation and to protect the company’s wealth. The Bitcoins, valued at well over $40 billion at the current rate, has sent the price of its MSTR stock soaring this year, alongside the apex cryptocurrency. The Virginia-based business intelligence, mobile software, and cloud services firm is the largest corporate holder of Bitcoin.
He predicts that the Trump administration’s implementation of a Bitcoin reserve strategy could push its price to $500,000 per coin. The MicroStrategy chairman views this as a major opportunity for both institutions and retail crypto investors.
U.S Lawmakers Are Actively Pursuing Establishment of Strategic Bitcoin Reserve
Earlier this year, Senator Cynthia Lummis, a Republican from Wyoming, submitted a rough framework to set up a national Bitcoin stockpile, where she recommended the Treasury to purchase 200,000 BTC, worth $1.9 billion, annually for five years until the reserve reaches one million ($95.90 billion) – about 5% of Bitcoin’s total supply.
She proposed utilizing the profits from Federal Reserve bank deposits and the government’s gold holdings to accumulate the coins. The Bitcoin reserve would be maintained for a minimum of 20 years. Earlier last week, the crypto advocacy group Bitcoin Policy Institute revealed a draft for an executive order that President Trump is expected to sign that will establish the strategic Bitcoin reserve.
Additionally, U.S. states like Ohio, Texas, and Pennsylvania have proposed incorporating Bitcoin into their respective treasuries.
The Ohio Bitcoin Reserve Act seeks to offset inflation and diversify the state’s financial portfolio. Meanwhile, Texas and Pennsylvania are pushing for a Bitcoin reserve sponsored by the government. Texas proposal suggests that the reserve would allow the Lone Star state to hold BTC that has been accumulated from taxes, fees, and donations. Furthermore, the Pennsylvania proposal offers a cushion against economic uncertainty by investing up to 10% of its treasury in Bitcoin.
Although Saylor’s comments received support from the broader crypto community, it has also faced strong opposition, particularly from Peter Schiff. The economist and gold bug argued that the proposal would have the opposite effect, stating that the move would weaken the dollar, exacerbate the national debt, deprive businesses of power, diminish growth, and destroy value.
At the time of writing, Bitcoin (BTC) is trading at $95,928 – down 0.49% in the last 24 hours.
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