Bitcoin treasury founder and pioneer Michael Saylor has said that the blockage of the Clarity Act is actually good for the digital asset space.
Writing on X on Saturday, the Strategy founder and chair said that legislation can make restrictions permanent just as easily as rights.
Lawmakers this week blocked long-awaited crypto legislation, the Clarity Act, which aims to formally divide oversight between regulators. The digital asset industry had long called for such rules to be in place.
Despite the hurdle, regulators like the Securities and Exchange Commission and the Commodity Futures Trading Commission are pushing ahead with rulemaking.
“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,” Saylor wrote.
He continued: “Let the Digital Assets industry innovate rapidly in a free market and create the greatest possible value for the U.S. and global economy.”
Saylor, whose company Strategy started buying bitcoin in 2020, argued that watchdogs going ahead to make rules anyway — like the SEC’s conditional relief for onchain trading of certain tokenized stocks and the CFTC Chairman stated willingness to act without the bill — would give crypto companies the regulation they need.
Saylor went on to argue that proposals in the act — such as limits on paying customers for holding payment stablecoins — wouldn’t benefit the crypto space anyway.
Senators on Tuesday mostly voted against advancing the legislation — 49 for and 50 against — that the digital asset industry has long called for.
The bill aims to formally divide oversight between regulators, distinguishing which digital assets are securities, commodities or stablecoins.
President Donald Trump last month urged lawmakers to pass it, helping spur a bitcoin rally. But Republicans warned for months that Democrats were deliberately holding it back.
Crypto industry bigwigs had long called for rules to be in place after regulators during the Biden Administration penalized companies in the digital asset space with fines for allegedly selling unregistered securities.