The CEO of Microstrategy and Bitcoin advocate, Michael Saylor has proposed a new Digital Asset Framework for the U.S. government that can fostering the country’s role in the domain.
According to Saylor, a new, bold digital asset strategy could transform the US economy, enhance the value of the US dollar, and position the United States as a global leader in the digital finance sector.
The holistic proposal details how to categorize digital assets, create a transparent marketplace, and encourage innovation in the digital finance industry.
Creating new categories for digital currencies, commodities, tokens, and even non-fungible tokens (NFTs) will help increase investments, spur innovation, and establish America’s position of leadership in the global financial landscape.
One of the defining aspects of the proposal will be the clear definition of the classes of digital assets. Thus, a clear taxonomy by the businesses, investors, and governments will be formed for this rapidly growing sector. The proposed categories are:
- Digital Commodities (e.g., Bitcoin)
- Digital Securities (backed by stocks or bonds)
- Digital Currencies (linked to traditional fiat currencies)
- Digital Tokens (with specific utility)
- Non-Fungible Tokens (NFTs) (representing unique digital assets)
- Asset-Backed Tokens (ABTs) (tied to physical assets like gold or oil)
This classification system is designed to ensure that digital assets are easily understood, creating a more reliable marketplace for issuers, investors, and owners alike.
The proposal also stresses building trust in digital asset markets through setting clear rights and responsibilities for issuers, exchanges, and owners. It focuses on the ethical behavior of these entities, transparency, and compliance with regulations.
The right to create and issue digital assets will be retained by issuers, but it will require them to make disclosures and act ethically. Exchanges will be entrusted with the responsibility of enabling trading and custody of the assets, and owners will have the responsibility to comply with laws and protect their assets.
A core principle of the framework is that no one should “lie, cheat, or steal,” and that all participants in the market are responsible for their actions.
The proposal advocates for an approach to the regulation that empowers innovation rather than stifling the same. Through streamlining processes of compliance and reducing red tape, the strategy therefore aims to reduce the length of time and cost implicated in issuing digital assets.
A new asset should, on average, cost no more than 1% to issue a new asset whereas only 0.1% annually to maintain the same.
The proposed strategy will be to expand US capital markets massively so that millions of businesses can access funding through digital assets. This may be a shift that will open up opportunities for small businesses, artists, and even celebrities to raise capital, thereby reducing the cost of issuing digital assets from tens of millions of dollars to just thousands.
Positioning the United States as a dominant force in the digital economy is the aim of the proposal. Establishing a sound digital asset policy will further increase demand for US Treasury bonds across the globe and help stabilize the value of the US dollar, which further reduces the national debt.
The US dollar could emerge as the world’s leading digital reserve currency, with digital markets growing from $25 billion to an astounding $10 trillion. The digital capital market could expand from $2 trillion to $280 trillion, with American investors capturing a large share of this wealth.
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