Michael Saylor calls the bankruptcy of key crypto players "sad" yet constructive. He said more industrial regulation is needed.
Saylor suggested that traditional financial firms advise the crypto business.
Michael Saylor, co-founder of Microstrategy, high-profile crypto bankruptcy cases and a severe price drop are unavoidable evils for the industry's development, but more regulation is essential.
In a Feb. 3 interview with CNBC's Squawk on the Street, Saylor expressed his opinions on potential forthcoming US crypto legislation in light of FTX's bankruptcy, noting that while the crypto crash was painful in the short term, it was important for the market to mature in the long run. He said that while the sector "had some fantastic ideas," he implied that others have "executed those nice ideas in a reckless fashion"—a reference to the Bitcoin $23,003 Lightning network.
Saylor claimed that organisations with a history of working in the traditional financial markets should provide guidance for the cryptocurrency industry. Regulators, in particular the Securities and Exchange Commission, should also provide feedback (SEC).
Adult oversight is what [the industry] requires. To grow, the sector requires companies like Goldman Sachs, Morgan Stanley, and BlackRock. Congress must establish certain rules for it. The SEC must provide clear driving instructions.
Saylor claims that this "meltdown" educated many people about cryptocurrencies and also demonstrated the need for "the globe to offer a constructive, transparent framework for digital assets" in order for the financial system to "advance into the 21st century."
Munger's criticism of cryptography in Saylor
Charlie Munger, the vice chair of the insurance and investment company Berkshire Hathaway, was criticised as well, and Saylor responded by stating that the 99-year-old investing guru should spend some time to research Bitcoin.
In a statement on February 1, Munger claimed that cryptocurrency is "not a money, not a commodity, and not a security," instead referring to it as "gambling," and that the United States should "clearly" enact legislation outlawing it.
Saylor agreed that Mungers crypto-criticism wasn't "completely incorrect," but added that there are "10,000 crypto tokens which aren't gambling" and pointed out that Charlie and the other critics are Western elites who are frequently pressed for an opinion on Bitcoin and don't have the time to research it. Munger would be more optimistic about Bitcoin than I am, he continued, if he "spent 100 hours researching" it.
Saylor mentioned developing nations including Argentina, Lebanon, and Nigeria as having high rates of cryptocurrency usage with use cases ranging from remittances to inflation hedging.