Saylor Urges US Clarity on Crypto Regulations
MicroStrategy's Michael Saylor is advocating for the United States to establish a formal crypto taxonomy. This framework would provide clear guidelines on when a security can be tokenized and what qualifies as a digital security versus a commodity.
Need for Clear Definitions
During MicroStrategy’s second-quarter earnings call, Saylor emphasized the importance of clarifying the digital asset landscape: "My opinion is it would be beneficial to the market if they nail down the digital assets taxonomy." He highlighted the need to define:
- Under what circumstances can you tokenize a security?
- What constitutes a digital security?
- Clarification of digital commodities and assets without an issuer.
- What defines a digital token?
The crypto industry has been seeking clearer legal definitions, especially after regulatory battles with the Securities and Exchange Commission (SEC) over the classification of crypto assets as securities. Saylor noted that without a clear taxonomy, confusion persists regarding who can issue assets and under what conditions. The SEC has formed a Crypto Task Force to address these uncertainties.
White House and SEC Initiatives
Saylor's comments align with recent actions from the White House Working Group on Digital Asset Markets, which urged federal regulators to expedite the clarification of crypto rules related to custody, trading, registration, and record-keeping.
SEC Chair Paul Atkins noted that tokenization innovation is largely occurring offshore due to regulatory challenges in the US. However, he mentioned that companies are seeking SEC guidance to tokenize assets, and he has directed SEC staff to provide appropriate relief to maintain US competitiveness in the digital asset industry.
Legislative Efforts
Congress is set to review the Digital Asset Market Clarity Act of 2025 in September. Saylor believes this bill could "create a very rich framework" for the crypto industry and businesses aiming to issue, trade, or tokenize assets onchain, envisioning a future where businesses can issue tokens quickly and affordably.
Robinhood's Tokenization Strategy
Robinhood is also making significant strides in crypto tokenization, focusing on providing access to private markets for retail investors in the US. CEO Vladimir Tenev mentioned during their second-quarter earnings call that they are collaborating with regulators to make this possible.
Robinhood has already introduced private equity tokens in Europe, representing shares of companies like OpenAI and SpaceX. However, their tokenization efforts have faced regulatory scrutiny, including a legal inquiry in Lithuania, and warnings from OpenAI regarding the lack of affiliation with their actual equity.
At Codeum, we are dedicated to enhancing security and development within the blockchain space. Our services include smart contract audits, KYC verification, and custom smart contract and DApp development. Learn more about how we can help secure your blockchain ventures by visiting Codeum.