Binance and Coinbase were hit with lawsuits by the U.S. Securities and Exchange Commission (SEC) last week.
MicroStrategy’s Founder and Executive Chairman, Michael Saylor, expressed his belief that recent regulatory actions in the United States indicate a future where the crypto industry will primarily revolve around Bitcoin (BTC).
In an interview with Bloomberg, Saylor stated, “MicroStrategy has held the view since 2020 that the only institutional-grade asset is bitcoin. It is evident that regulators do not perceive a viable path for cryptocurrencies beyond Bitcoin. As a result, the industry as a whole is likely to be rationalized, focusing primarily on Bitcoin while possibly accommodating a select few other proof-of-work tokens.”
Last week, the U.S. Securities and Exchange Commission (SEC) filed lawsuits against Binance and Coinbase, the two largest crypto exchanges in terms of market capitalization. The lawsuits mentioned a total of 19 tokens, none of which included Bitcoin. Previously, SEC Chair Gary Gensler classified Bitcoin as a commodity.
MicroStrategy, under Saylor’s leadership, began acquiring Bitcoin in 2020, considering it to be a far superior store of value compared to gold. The company currently holds around 140,000 Bitcoin valued at approximately $4 billion. In March 2023, Saylor faced legal claims regarding unpaid personal income taxes, interest, and penalties in Washington, D.C. However, the court dismissed allegations of Saylor and MicroStrategy conspiring to violate the law.
Regulatory clarity is going to drive #Bitcoin adoption by eliminating the confusion & anxiety that has been holding back institutional investors. Bitcoin dominance will continue to grow as the #Crypto industry rationalizes around $BTC and goes mainstream. pic.twitter.com/Foq4lpderj
— Michael Saylor⚡️ (@saylor) June 13, 2023
According to Saylor, with approximately 25,000 other cryptocurrencies vying to emulate or surpass Bitcoin, the general public has now recognized Bitcoin as the definitive cryptocurrency. He stated that the “next logical progression” would involve Bitcoin increasing its value tenfold to reach $250,000.
Saylor expressed confidence that eventually, crypto exchanges will acknowledge that Bitcoin is the dominant asset within the industry. He believes that their business models will remain intact and profitable as Bitcoin’s value surges by a factor of ten.
