Michael Saylor Proposes Digital Asset Framework for U.S. Leadership in the Global Economy

• Saylor’s framework defines digital asset categories for clearer regulation and innovation.  
• Proposed rights and responsibilities for issuers, exchanges, and owners ensure accountability.  
• Vision for U.S. leadership in digital economy through rapid issuance and broader market access.

Michael Saylor has published a comprehensive framework to enable the United States to lead the global digital economy. The framework outlines a clear structure for digital assets, emphasizing taxonomy, legitimacy, practicality, and a vision for a capital markets renaissance.

This proposal seeks to create an environment where innovation can flourish while ensuring transparency, fairness, and efficiency in digital asset markets.

Defining Digital Asset Classes

The first part of Saylor’s framework focuses on establishing a clear taxonomy of digital assets. This categorization is crucial for creating universally understood definitions that guide policy and innovation. The proposed digital asset classes are:

• Digital Commodity: Assets without an issuer, backed by digital power (e.g., Bitcoin).
• Digital Security: Assets with an issuer backed by a security such as equity, debt, or derivatives.
• Digital Currency: Issuer-backed assets pegged to fiat currencies.
• Digital Token: Fungible assets with an issuer that offers digital utility.
• Digital NFT: Non-fungible assets with an issuer that offers digital utility (Non-Fungible Tokens).
• Digital ABT: Assets backed by physical commodities such as gold, oil, or agricultural products.

By defining these categories, Saylor argues that the U.S. can provide a clear path for regulating digital assets and fostering innovation.

Establishing Rights and Responsibilities

A key element of the framework is the need for a robust set of rights and responsibilities for all participants in the digital asset ecosystem, including issuers, exchanges, and owners. 

• Issuers have the right to create and issue digital assets and are responsible for ensuring fair disclosure and ethical behaviour.
• Exchanges are granted the right to custody, trade, and transfer assets while being responsible for protecting client assets and avoiding conflicts of interest.
• Owners are given the right to self-custody, trade, and transfer their assets, provided they comply with local laws.

The framework emphasizes that all participants must adhere to ethical conduct, with civil and criminal accountability for violations.

Saylor’s framework also advocates for a practical, innovation-driven approach to digital asset regulation. Instead of burdensome bureaucracy, the focus is on standardized disclosures and industry-led compliance. 

The proposal suggests that exchanges should handle data collection and disclosure, reducing the regulatory burden on issuers. Moreover, the cost of asset issuance should be limited to no more than 1% of assets under management, and ongoing maintenance costs should not exceed 10 basis points annually.

The final component of the framework looks to the future, where digital assets could drive a capital markets renaissance. Saylor envisions rapid asset issuance, reduced costs, and broader access to capital markets. 

He proposes that the U.S. could open up capital markets to millions of businesses, enabling smaller companies, artists, and individuals to raise funds through tokenized assets.