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Michael Saylor, the CEO of business intelligence firm MicroStrategy, believes stricter regulation will be good for Bitcoin (BTC/USD). The BTC maximalist said this during an interview on February 2, noting that clear crypto regulation would help accelerate institutional adoption.
In the interview, Saylor pointed out that as an ardent BTC believer, he hopes the Biden administration will introduce regulations that separate digital property from digital securities and digital currencies. He added that he hopes the US government provides guidelines on the operating rules of digital exchanges.
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Speaking about the volatility of the crypto market, Saylor said it comes from high-speed trading. While the wild price swings of the crypto market have for a long-time inhibited adoption, Saylor believes that inevitable widespread crypto adoption would help stabilize prices.
Explaining why he believes mass crypto adoption is inevitable, the BTC evangelist said,
The most important point is that Big Tech and Big Finance and billions of people around the world need a digital property solution. We have a technically sound, economically sound, morally sound, politically sound path forward, and that’s bitcoin. I think people are starting to realize that now.
However, to get here, Saylor believes the US Securities Exchange (SEC) should approve spot market BTC exchange-traded funds (ETFs) and allow companies to use fair value accounting BTC holdings.
SEC says MicroStrategy’s accounting methods are not suitable
This news comes after the SEC rejected MicroStrategy’s non-GAAP (Generally Accepted Accounting Principles) accounting methods. According to the regulator, MicroStrategy excludes BTC’s volatility from its unofficial accounting methods.
On the other hand, MicroStrategy argues that its accounting methods are useful to investors and analysts when it comes to comparing its performance across reporting periods consistently. Following the rejection, MicroStrategy’s stock (MSTR) plunged over 20% and is yet to recover these losses.
At the time of writing, MSTR is down 6.48% in the day to change hands at $348.84 (£257.29)
While Saylor has historically been vocal about his bullish outlook for BTC, saying that the flagship cryptocurrency would hit a $100.00 trillion (£73.77 trillion) market cap at one point, he was not as enthused in the recent interview.
At the time of writing, BTC is changing hands at $37,083.01 (£27,354.47) after losing 3.40% over the past 24 hours. While the cryptocurrency had gathered steam to trade as high as $39,115.13 (£28,853.47), it failed to maintain this bullish momentum and slipped back to its current level, showing bears are still dominant.