With the continuous development of the crypto market, MicroStrategy's founder Michael Saylor recently proposed a new framework for implementing digital assets in the U.S., which is expected to bring unprecedented growth to the digital asset space and drive adoption rates to record highs. Although short-term price adjustments may threaten market momentum, recent activities in the bull market cycle have laid the groundwork for future increases.
Digital Asset Framework - Reshaping the U.S. Position in the Crypto Market
In a new report, Saylor proposed a taxonomy for participants in the crypto space, clarifying the rights and responsibilities of all parties. The core idea is to strengthen the U.S.'s leadership position in the global crypto market, especially under the promotion of Bitcoin and blockchain technology, enhancing its international competitiveness. The implementation of this framework is expected to facilitate a massive influx of capital and further consolidate the U.S. as the leader in the global crypto industry.
On the eve of the U.S. elections, then-President Donald Trump also reiterated his position for the U.S. to become a global leader in blockchain, Bitcoin, and artificial intelligence, highlighting the political importance of this framework.
Capital Inflows and Bitcoin Strategic Reserves
According to Saylor's documents, with the strengthening of U.S. participation in the crypto market, the total value of the digital capital market is expected to soar from the current $2 trillion to $280 trillion, with U.S. investors dominating this growth. This significant increase is not only expected to drive Bitcoin prices higher but will also further consolidate the dollar's position in the global economy, thereby helping to reduce national debt.
The capital inflow following Trump's election has significantly impacted the market, driving the price of Bitcoin from $90,000 to $107,000. Despite slight selling pressure in the market, traders remain optimistic about favorable market regulation in the context of Republican control of Congress. The intensification of capital inflows is expected to drive adoption globally and further promote a historic breakthrough in Bitcoin's market capitalization.
In particular, the role of Bitcoin strategic reserves has become a key factor driving the rise. Most industry experts believe that the increase in Bitcoin reserves will attract more bullish capital, thereby helping the U.S. reduce its debt burden. Senator Cynthia Lummis's proposed bill suggests purchasing 1 million Bitcoin each year and holding them for at least 20 years. She also proposed selling part of the gold reserves to fund this Bitcoin purchase plan.
Compliance and Global Collaboration
Although the policy environment for the U.S. crypto market is gradually moving in a positive direction, significant efforts are still required to align with other international markets. Saylor emphasized the need to establish a clear and transparent set of rules for issuers, owners, and exchanges of crypto assets to avoid the frequent legal disputes and regulatory controversies seen in the past. He called for the establishment of a real-time, seamless, and sustainable process for the issuance and trading of digital assets worldwide.
Specifically, this framework defines the basic rights and responsibilities of participants in the crypto market:
Issuers
Rights: The right to create and issue digital assets.
Responsibilities: Ensure fair disclosure and ethical conduct, ensuring transparency and fairness.
Exchanges
Rights: Provide custody, trading, and transfer services for digital assets to clients.
Responsibilities: Disclose information about the assets, protect customer assets, and prevent conflicts of interest.
This clear taxonomy will lay the foundation for the regulated development of the crypto market and provide necessary legal protection for market participants.
As the U.S. government and institutions increasingly focus on crypto assets, we can foresee that the market size of digital assets will rapidly expand in the coming years. However, to truly achieve comprehensive adoption of digital assets like Bitcoin, global policy coordination, technological innovation, and market regulation need to work in concert.
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