Lower costs, easier access, and greater control over money create the constituency that protects innovation.The Digital Assets industry is better off moving forward with supportive rules from the SEC, CFTC, Treasury, and banking regulators than accepting the restrictions in the final CLARITY compromise. We have an administration willing to modernize financial markets. We should use the next two years to put better financial products into people's hands.Our safest path forward is to create products that delight customers and deploy them broadly. Lower costs, easier access, useful services, and greater control over money give people a direct interest in preserving innovation. The strongest constituency we can build is a public that benefits from what we create.Legal certainty matters. So does the freedom to compete. A law can make a restriction durable just as easily as it can make a right durable. Before celebrating permanence, we should examine what we are making permanent.<h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">What CLARITY Would Have Restricted</h3>The September CLARITY compromise would have restricted covered providers from paying customers simply for holding payment stablecoins, while allowing qualifying activity rewards. It also would have directed Treasury to restrict certain rewards upon specified findings of substantial, detrimental deposit transfers from community banks. (<a href="https://www.lummis.senate.gov/wp-content/uploads/EHF26724.pdf" style="color:inherit;text-decoration:underline;">Lummis Senate</a>)Protecting a bank from a liquidity crisis and protecting it from a better competitor are different objectives. Financial stability requires sound oversight. Competition requires that customers be free to choose a better service. When technology reduces the cost of delivering financial services, consumers should share in the savings.The separate GENIUS Act already contains restrictions on issuer-paid stablecoin interest and yield, subject to its effective-date provisions. (<a href="https://www.law.cornell.edu/uscode/text/12/5903" style="color:inherit;text-decoration:underline;">Cornell Law</a>) CLARITY's setback leaves that law intact. The issue is whether to layer additional restrictions onto providers and rewards.Even CLARITY's innovation sandbox would have limited participating firms to 25 employees and each commission to 20 project approvals annually. (<a href="https://www.lummis.senate.gov/wp-content/uploads/EHF26724.pdf#page=247" style="color:inherit;text-decoration:underline;">Lummis Senate</a>) These were limits on that program, but they illustrate how legislation can fix the dimensions of an experiment before the market has revealed its potential.The objective should be a free market in financial innovation: clear rules, open entry, vigorous competition, and freedom for customers to choose. Protect ownership rights, require honest disclosures, and punish fraud. Within those rules, let entrepreneurs test better technologies and business models, and let successful products grow.<h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">The Administration Is Already Opening That Path</h3>On September 17, the SEC used existing authority to provide conditional relief for onchain trading of certain tokenized stocks. Chairman Paul Atkins described a process of allowing markets to develop, learning from their operation, and following temporary relief with durable rulemaking. Investor protections and the securities laws' prohibitions on fraud remain in place. (<a href="https://www.sec.gov/newsroom/speeches-statements/atkins-innovation-exemption-bridge-toward-durable-rulemaking-091726" style="color:inherit;text-decoration:underline;">SEC</a>)CFTC Chairman Michael Selig supported CLARITY, but also committed to using existing authority if the bill stalled. He directed staff to explore rules for leveraged or margined crypto trading through regulated markets and to work with developers on lawful onchain finance. (<a href="https://www.cftc.gov/PressRoom/SpeechesTestimony/opaselig10" style="color:inherit;text-decoration:underline;">CFTC</a>)Treasury Secretary Scott Bessent has connected stablecoin implementation with innovation, American growth, and the dollar's global role. Workable rules can help translate those objectives into payments, commerce, and financial services people use. (<a href="https://home.treasury.gov/news/press-releases/sb0605" style="color:inherit;text-decoration:underline;">Treasury</a>)CLARITY itself preserved existing SEC exemptive authority. (<a href="https://www.lummis.senate.gov/wp-content/uploads/EHF26724.pdf#page=116" style="color:inherit;text-decoration:underline;">Lummis Senate</a>) That is precisely the point: substantial opportunities already exist under current law. We can pursue them without accepting the bill's additional restrictions as the price of progress.<h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">The Digital Assets Stack</h3>As appropriate rules and compliant market infrastructure develop, the benefits can extend across the Digital Assets economy.Digital Capital&mdash;Bitcoin (BTC). The OCC has eased supervisory barriers to bank crypto custody. (<a href="https://www.occ.gov/news-issuances/news-releases/2025/nr-occ-2025-16.html" style="color:inherit;text-decoration:underline;">OCC</a>) Building on that progress with workable custody rules and prudently underwritten lending can make Bitcoin easier to own, finance, and use as collateral. More institutions competing to serve Bitcoin holders can expand access and deepen liquidity.Digital Credit&mdash;Stretch (STRC). Our flagship Digital Credit instrument, STRC, is preferred stock that connects Strategy's Bitcoin treasury business with investors seeking income. (<a href="https://www.strategy.com/strc/brief" style="color:inherit;text-decoration:underline;">Strategy</a>) Supportive rules can open opportunities for broader distribution, tokenized ownership, and more convenient trading while preserving shareholders' legal rights. Compliant lending arrangements could make STRC more useful as collateral, with clear terms and risk disclosures.Digital Equity&mdash;Strategy (MSTR). Additional compliant trading venues, easier transfer, and longer trading hours could widen participation in Strategy's common stock and improve liquidity. More efficient access to equity capital can help Bitcoin treasury companies finance growth and develop new financial products. Modernizing market infrastructure can benefit both issuers and shareholders.Digital Exchanges&mdash;Coinbase (COIN). Platforms such as Coinbase can compete to combine crypto, securities, custody, payments, and financing in a more useful customer experience. (<a href="https://www.coinbase.com/about" style="color:inherit;text-decoration:underline;">Coinbase</a>) Supportive rules can help appropriately regulated businesses introduce and integrate new products. Broader participation creates business opportunities for exchanges and greater competition on price and service for customers.Digital Currency&mdash;Circle (USDC). USDC, the regulated dollar stablecoin issued through affiliates of U.S.-based Circle, connects digital finance to everyday payments and global commerce. (<a href="https://www.circle.com/usdc" style="color:inherit;text-decoration:underline;">Circle</a>) Supportive rules can help Circle and its partners expand digital dollar use through faster settlement, programmable payments, and integration with financial institutions. American businesses can gain new markets while the dollar becomes more useful worldwide.Digital Innovation. These categories reinforce one another. Capital supports credit. Equity finances businesses. Exchanges connect investors and issuers. Digital currency moves value between them. Developers can combine these capabilities into products more useful than the individual components. Open competition lets more people build, more ideas be tested, and more value reach customers.Banks should participate in this future. They can compete to provide custody, payments, distribution, and credit against digital assets. Established institutions and new entrants should earn customers by delivering better products and service. That is how financial innovation improves the financial system.<h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">Why Speed Matters</h3>Speed matters because innovation compounds. An earlier launch produces earlier feedback. Better products attract customers, distribution, and investment, which support the next round of improvement. A year spent waiting is a year of benefits customers never receive and experience American businesses never acquire.The gains extend beyond finance. Lower payment and financing costs can free resources for businesses to invest, hire, and expand. Faster settlement puts capital back to work sooner. Broader access connects savers and entrepreneurs. Giving American firms room to develop and export these capabilities can strengthen the U.S. economy while creating value around the world.<h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">The Best Protection Is a Public That Benefits</h3>The strongest argument for CLARITY is familiar: "We need a law to protect us from a future hostile administration."Durable law can protect rights, and some changes still require Congress. But no statute removes politics from regulation. A future administration would still make important implementation and enforcement decisions. The industry also needs a public constituency that makes hostility costly.Imagine 50 million American voters using digital financial products that improve their lives: cheaper payments, convenient access to Bitcoin, useful securities, transparent income products, and credit on competitive terms.Those voters would have something concrete to defend. Taking away an unfamiliar technology is politically different from taking away a service millions of people rely on. A future administration would have to explain why those customers should lose benefits they already enjoy.The goal should be 50 million satisfied users with a direct interest in preserving financial choice. Adoption raises the political cost of reversal. Sound rulemaking strengthens the legal foundation. We should build both.Adoption also improves the next legislative debate. Products that do not yet exist have no customers to speak for them. Once they are widely used, households, businesses, advisers, developers, and banks can explain what they want preserved. A record of public benefit gives the industry a stronger position than promises about what it might someday deliver.Customer delight must be earned. Products should be useful, understandable, and dependable in good markets and difficult ones. Transparent terms, honest risk disclosures, convenient access, and the freedom to change providers build trust. Broad deployment turns that trust into lasting support.We should use 2027 and 2028 to establish useful products at scale, convert temporary relief into durable rules, and pursue focused legislation where additional authority or protections are needed. The measure of success is the value delivered to customers and the economy.Let the Digital Assets industry innovate rapidly in a free market and create the greatest possible value for the U.S. and global economy. Create products that delight customers. Deploy them broadly. Give millions of people a reason to defend the freedom that made them possible.The best protection for digital innovation is a public that benefits from it.

Digital Assets After CLARITY: The Best Protection Is Adoption

The Bitcoin Reformation

Upgrade The World

110 Reasons BIP 110 Is a Bad Idea

Bitcoin’s greatest evolution over the next decade will come from changing less at the protocol layer and mattering more everywhere else.<ul style="margin:0 0 1.3em 0;padding-left:1.4em;line-height:1.75;"><li style="margin-bottom:0.4em;">The base layer will harden.</li><li style="margin-bottom:0.4em;">The capital markets will deepen.</li><li style="margin-bottom:0.4em;">The applications will expand.</li><li style="margin-bottom:0.4em;">The institutions will arrive.</li><li style="margin-bottom:0.4em;">The world will build on Bitcoin.</li></ul>Bitcoin is not a technology stock, a payments company, or a software platform competing to add features. Bitcoin is a monetary network. Its purpose is not to move fast and break things. Its purpose is to move slowly and not break.That distinction will define the next decade.<h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">Bitcoin Is Digital Capital</h3>Bitcoin has already won its first great battle. The world increasingly understands that Bitcoin is digital capital: scarce, durable, portable, divisible, programmable, and globally transferable.The strongest version of Bitcoin is not “Bitcoin replaces every payment rail.” The strongest version is “Bitcoin becomes the neutral, global, scarce asset against which capital, credit, and commerce are organized.”The base layer is not optimized for coffee payments. It is optimized for final settlement. It is scarce block space secured by energy, cryptography, economic incentives, and global consensus.<ul style="margin:0 0 1.3em 0;padding-left:1.4em;line-height:1.75;"><li style="margin-bottom:0.4em;">High-value settlement belongs on the base layer.</li><li style="margin-bottom:0.4em;">Treasury reserves belong on the base layer.</li><li style="margin-bottom:0.4em;">Collateral settlement belongs on the base layer.</li><li style="margin-bottom:0.4em;">Final ownership transfer belongs on the base layer.</li></ul>Consumer payments, digital banking, lending, credit, stable-value instruments, and yield-bearing products will develop around Bitcoin, on top of Bitcoin, adjacent to Bitcoin, and through institutional interfaces to Bitcoin.Bitcoin remains Bitcoin. The world builds on it.<h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">The Four-Year Cycle Becomes Less Important</h3>The Bitcoin halving will always matter. It is part of the monetary architecture. Every halving reduces new supply and reinforces the credibility of Bitcoin’s 21 million cap.But the four-year cycle is no longer the dominant model.Bitcoin is now too institutional, too global, too liquid, and too integrated into capital markets to be explained by a simple retail-cycle narrative. The supply side keeps shrinking, but the demand side is being transformed.Over the next decade, Bitcoin’s trajectory will be driven less by miner issuance and more by capital flows.<ul style="margin:0 0 1.3em 0;padding-left:1.4em;line-height:1.75;"><li style="margin-bottom:0.4em;">ETF flows.</li><li style="margin-bottom:0.4em;">Corporate treasury flows.</li><li style="margin-bottom:0.4em;">Sovereign reserve flows.</li><li style="margin-bottom:0.4em;">Bank credit flows.</li><li style="margin-bottom:0.4em;">Derivatives flows.</li><li style="margin-bottom:0.4em;">Insurance flows.</li><li style="margin-bottom:0.4em;">Collateral flows.</li><li style="margin-bottom:0.4em;">Structured credit flows.</li><li style="margin-bottom:0.4em;">Global savings flows.</li></ul>The halving tightens supply. Capital flows set the growth trajectory.This is the next phase of Bitcoin adoption: not just more buyers, but more balance sheets.<h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">Digital Credit Accelerates Bitcoin Adoption</h3>Bitcoin is digital capital. Digital credit is how that capital connects to the broader financial system.Capital markets need duration, yield, credit, collateral, maturity transformation, risk management, and income products. Bitcoin by itself gives the world a superior form of capital. Bitcoin-backed financial products allow that capital to move through the global economy.Digital capital becomes digital credit. Digital credit becomes digital money. Digital money becomes the interface between Bitcoin and the global economy.This does not weaken Bitcoin. It strengthens Bitcoin.Gold became more useful when banks, capital markets, credit instruments, and settlement systems developed around it. Real estate became more useful when mortgages, REITs, securitization, insurance, and credit markets developed around it. Equities became more useful when exchanges, index funds, derivatives, margin systems, and custody networks developed around them.Bitcoin will follow the same pattern, but faster and on a global digital network.The next wave of adoption will not be limited to people buying Bitcoin. It will include individuals, corporations, banks, funds, insurers, pensions, sovereigns, and credit markets using Bitcoin as capital.<h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">The Interfaces Become the Battleground</h3>Everyone will want Bitcoin’s properties. Not everyone will want the same relationship to Bitcoin.<ul style="margin:0 0 1.3em 0;padding-left:1.4em;line-height:1.75;"><li style="margin-bottom:0.4em;">Some will hold private keys.</li><li style="margin-bottom:0.4em;">Some will hold ETFs.</li><li style="margin-bottom:0.4em;">Some will hold Bitcoin through banks.</li><li style="margin-bottom:0.4em;">Some will hold Bitcoin through companies.</li><li style="margin-bottom:0.4em;">Some will use Bitcoin as collateral.</li><li style="margin-bottom:0.4em;">Some will own Bitcoin-backed credit.</li><li style="margin-bottom:0.4em;">Some will use digital money backed by digital credit backed by Bitcoin.</li></ul>All of these interfaces will matter. They are not all the same.Self-custody preserves sovereignty. Institutional custody expands access. ETFs simplify allocation. Banks create credit. Companies create securities. Miners secure the network. Nodes enforce the rules. Holders allocate the capital.The great tension of the next decade will not be whether Bitcoin survives. Bitcoin has survived. The tension will be whether economic exposure to Bitcoin remains connected to actual Bitcoin, or whether the world creates too much paper Bitcoin.<ul style="margin:0 0 1.3em 0;padding-left:1.4em;line-height:1.75;"><li style="margin-bottom:0.4em;">Custody matters.</li><li style="margin-bottom:0.4em;">Transparency matters.</li><li style="margin-bottom:0.4em;">Proof of reserves matters.</li><li style="margin-bottom:0.4em;">Risk management matters.</li><li style="margin-bottom:0.4em;">Capital structure matters.</li><li style="margin-bottom:0.4em;">Counterparty risk matters.</li></ul>The protocol can remain sound while the surrounding financial system creates leverage, opacity, and periodic crises. Bitcoin does not eliminate human error. It exposes it.<h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">The Protocol Gets Harder to Change</h3>Bitcoin’s immune system is hard consensus.That is not a weakness. It is the source of Bitcoin’s strength.<ul style="margin:0 0 1.3em 0;padding-left:1.4em;line-height:1.75;"><li style="margin-bottom:0.4em;">Fees price block space.</li><li style="margin-bottom:0.4em;">Nodes set policy.</li><li style="margin-bottom:0.4em;">Miners build blocks.</li><li style="margin-bottom:0.4em;">Holders allocate capital.</li><li style="margin-bottom:0.4em;">Protocol changes require overwhelming alignment.</li></ul>The most important feature of Bitcoin is not that it can be upgraded easily. The most important feature is that it cannot be changed casually.Over the next decade, Bitcoin’s base layer will become more conservative, not less. The burden of proof for protocol changes will rise. Proposals that introduce systemic risk, weaken decentralization, alter monetary integrity, increase political attack surface, or create unacceptable unintended consequences will face resistance.That is healthy.Bad ideas should fail before they become iatrogenic protocol changes.Innovation will continue, but it will migrate to the edges: wallets, custody, Lightning, sidechains, layered protocols, institutional settlement, collateral systems, digital credit, and digital money.The base layer will become the court of final settlement.Bitcoin’s future depends on the world innovating around it without compromising it.<h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">Mining Becomes Energy Infrastructure</h3>Bitcoin mining will become more professional, more institutional, and more deeply integrated with energy markets.Mining is the bridge between digital security and physical energy. It converts electricity into monetary security. It creates a global market for energy that is location-flexible, interruptible, and economically disciplined.The strongest miners will not simply be the operators with the best machines. They will be the operators with the best power contracts, the best capital structure, the best treasury strategy, the best grid relationships, and the best ability to monetize energy under volatile conditions.As the block subsidy declines, fees will matter more. Block space will become more valuable. The mining industry will become less like a hobbyist technology sector and more like a strategic energy, infrastructure, and capital markets industry.Bitcoin mining will secure the network, stabilize energy demand, monetize stranded or curtailed power, and force a global conversation about the relationship between money and energy.<h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">The Risks Are Real</h3>Bitcoin’s biggest risk is not that it disappears.The biggest risk is that bad ideas compromise it, that custodians obscure it, that leverage distorts it, or that political actors attempt to control the interfaces to it.The first risk is protocol corruption. Bitcoin’s monetary integrity depends on hard consensus. Changes to the base layer should be rare, carefully examined, and supported only after overwhelming alignment.The second risk is paper Bitcoin. If intermediaries create more claims to Bitcoin than actual Bitcoin, the market will suffer periodic credit crises. The protocol will survive, but investors can still be harmed by leverage, opacity, and rehypothecation.The third risk is custodial centralization. If most users hold Bitcoin through a small number of banks, exchanges, funds, and apps, Bitcoin remains scarce, but the user experience becomes increasingly permissioned.The fourth risk is regulatory capture. Governments may not be able to change Bitcoin, but they can regulate exchanges, brokers, custodians, miners, banks, tax reporting, and energy access.The fifth risk is fee-market uncertainty. As the subsidy declines, Bitcoin needs a durable, high-value fee market to support long-term security. I believe that market develops as Bitcoin becomes global settlement collateral, but it will not develop in a straight line.None of these risks invalidate Bitcoin. They define the work ahead.<h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">The Next Decade</h3>By 2036, I expect Bitcoin to be more widely held, more deeply institutionalized, more politically important, more financially integrated, and more fiercely defended.<ul style="margin:0 0 1.3em 0;padding-left:1.4em;line-height:1.75;"><li style="margin-bottom:0.4em;">It will be a global digital capital asset.</li><li style="margin-bottom:0.4em;">It will serve as treasury reserve capital for individuals, corporations, funds, banks, and sovereigns.</li><li style="margin-bottom:0.4em;">It will become a dominant collateral asset for digital credit markets.</li><li style="margin-bottom:0.4em;">It will settle high-value transactions with finality.</li><li style="margin-bottom:0.4em;">It will anchor new forms of digital money.</li><li style="margin-bottom:0.4em;">It will support a growing ecosystem of credit, yield, derivatives, insurance, custody, and structured financial products.</li></ul>And the base protocol will likely change less than almost everything built around it.That is the paradox of Bitcoin.<ul style="margin:0 0 1.3em 0;padding-left:1.4em;line-height:1.75;"><li style="margin-bottom:0.4em;">The world wants digital capital.</li><li style="margin-bottom:0.4em;">The world needs digital credit.</li><li style="margin-bottom:0.4em;">The world will demand digital money.</li><li style="margin-bottom:0.4em;">The world will build financial systems around Bitcoin.</li></ul>But Bitcoin’s job is not to become everything.Bitcoin’s job is to be the thing that does not change.

Bitcoin Evolves by Not Changing

Bitcoin, Digital Credit, and Digital Money

The Four Ideologies of Bitcoin

<h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">Preamble</h3>With the right digital assets framework, policies, and leadership, we can enrich our citizens, empower our businesses, dominate the global economy, and pay off the national debt. The economic benefit to the U.S. ranges from $60-100 trillion over the next decade. The spiritual benefit will be enormous and enduring.<h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">Digital Assets — Create a Sound Framework to Catalyze the Crypto Renaissance</h3>The proper digital assets taxonomy eliminates unnecessary confusion, conflict, and controversy while fostering rapid innovation, collaboration, and capital creation. A streamlined approach introduces four new digital asset classes, seamlessly integrating the traditional financial system of securities, commodities, and currencies with the new digital economy. This structure must be elegant, intuitive, and adaptable to accommodate billions of people and millions of companies.<ol style="margin:0 0 1.3em 0;padding-left:1.4em;line-height:1.75;"><li style="margin-bottom:0.4em;">Digital Token&nbsp;- An asset with an issuer, backed by Digital Utility, for Capital Creation &amp; Innovation.</li><li style="margin-bottom:0.4em;">Digital Security&nbsp;- An asset with an issuer, backed by a Security or Commodity, for Capital Efficiency &amp; Globalization.</li><li style="margin-bottom:0.4em;">Digital Currency&nbsp;- An asset with an issuer, backed by Currency, for Digital Commerce &amp; Dollar Supremacy.</li><li style="margin-bottom:0.4em;">Digital Commodity&nbsp;- An asset&nbsp;without an issuer, backed by Digital Power, for Capital Preservation &amp; Appreciation.</li></ol><h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">Vision — Unleash the Power of the Crypto Industry to Grow the Global Economy</h3><ul style="margin:0 0 1.3em 0;padding-left:1.4em;line-height:1.75;"><li style="margin-bottom:0.4em;">Millions of U.S. businesses, artists, influencers, and institutions can quickly access capital markets by issuing Digital Tokens via Digital Exchanges.</li><li style="margin-bottom:0.4em;">Thousands of stocks, bonds, ETFs, and commodities can be issued as Digital Securities, circulating 24/7 globally on computer networks and mobile devices.</li><li style="margin-bottom:0.4em;">Digital Currencies issued by U.S. companies will ensure the dollar remains integral to global commerce, positioning American issuers as the world’s financial leaders.</li><li style="margin-bottom:0.4em;">The dominant Digital Commodity, Bitcoin, will serve as a global standard for capital preservation and appreciation, attracting trillions in capital flows, with the U.S. as the primary beneficiary.</li></ul><h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">Principles — Become Bankers to the World by Revitalizing Capitalism &amp; Property Rights</h3><ul style="margin:0 0 1.3em 0;padding-left:1.4em;line-height:1.75;"><li style="margin-bottom:0.4em;">Issuers&nbsp;must have the right to create and issue assets without requiring prior approval from regulators.</li><li style="margin-bottom:0.4em;">Exchanges&nbsp;should have the right to custody, trade, and transfer digital assets seamlessly between clients and other exchanges.</li><li style="margin-bottom:0.4em;">Owners&nbsp;should have the right to freely custody, trade, and transfer their assets.</li><li style="margin-bottom:0.4em;">All market participants&nbsp;must adhere to:<ul style="margin:0 0 1.3em 0;padding-left:1.4em;line-height:1.75;"><li style="margin-bottom:0.4em;">Fair disclosure.</li><li style="margin-bottom:0.4em;">Ethical behavior.</li><li style="margin-bottom:0.4em;">A commitment to avoiding conflicts of interest.</li></ul></li><li style="margin-bottom:0.4em;">No one&nbsp;has the right to engage in fraud, and all are civilly and criminally accountable for their actions.</li><li style="margin-bottom:0.4em;">The industry&nbsp;should be responsible for disclosures and compliance, allowing markets to function organically.</li><li style="margin-bottom:0.4em;">Digital assets&nbsp;should move freely over the internet, as swiftly as computational processes allow, without censorship or regulatory obstruction.</li><li style="margin-bottom:0.4em;">By establishing superior financial protocols,&nbsp;the U.S. can lead the world in digital finance, attract global capital, and serve as the foundation for the future economy.</li></ul><h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">Imperatives — End the War on Crypto and Drive the Digital Transformation of the Economy</h3><ul style="margin:0 0 1.3em 0;padding-left:1.4em;line-height:1.75;"><li style="margin-bottom:0.4em;">Hostile and unfair tax policies on crypto miners, holders, and exchanges hinder industry growth and should be eliminated, along with arbitrary, capricious, and discriminatory regulations.</li><li style="margin-bottom:0.4em;">The government should encourage and provide support for major banks to custody, trade, and finance Bitcoin assets. Debanking of crypto industry participants should not be tolerated.</li><li style="margin-bottom:0.4em;">For the industry to reach its full potential, it needs to be recognized as legitimate and treated fairly by the traditional banking, insurance, and financial establishment, as well as government agencies.</li></ul><h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">Opportunity — Transform &amp; Turbocharge the U.S. Economy Over the Next Decade</h3><ol style="margin:0 0 1.3em 0;padding-left:1.4em;line-height:1.75;"><li style="margin-bottom:0.4em;">Digital Token&nbsp;- Expand U.S. companies' capital base by $10 trillion, dominating global products and services. We&nbsp;export our ideas&nbsp;to the world.</li><li style="margin-bottom:0.4em;">Digital Security&nbsp;- Grow U.S. securities by $20 trillion, establishing leadership in global stock, bond, and derivatives markets. We&nbsp;export our securities&nbsp;to the world.</li><li style="margin-bottom:0.4em;">Digital Currency&nbsp;- Expand U.S. Treasuries by $10 trillion, reinforcing dominance in global banking, credit, and currency markets. We&nbsp;export our currency&nbsp;to the world.</li><li style="margin-bottom:0.4em;">Digital Commodity&nbsp;- Increase U.S. long-term capital assets by $20 trillion, enhancing the wealth of American households and corporations. We&nbsp;export our values&nbsp;to the world.</li></ol><h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">Strategic Bitcoin Reserve — Win the Race to Dominate Cyberspace &amp; Own the Future</h3><ol style="margin:0 0 1.3em 0;padding-left:1.4em;line-height:1.75;"><li style="margin-bottom:0.4em;">Acquire 5-25% of the Bitcoin network&nbsp;in trust for the nation through consistent, programmatic daily purchases between 2025 and 2035, when 99% of all BTC will have been issued.</li><li style="margin-bottom:0.4em;">The Strategic Bitcoin Reserve (SBR) has the potential to generate $16-81 trillion in wealth for the U.S. Treasury by 2045, offering a viable pathway to offset the national debt.</li><li style="margin-bottom:0.4em;">Never Sell Your Bitcoin!&nbsp;By 2045, the reserve should be generating $10+ trillion annually, continuously growing, and serving as a perpetual source of prosperity for the American people for generations to come.</li></ol><h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">Conclusion — A Call to Action</h3>The time to act is now. By embracing digital assets and fostering innovation, the United States can secure its position as the global leader in the 21st-century economy. Policymakers, regulators, and industry leaders must collaborate to establish a regulatory framework that enables responsible growth while ensuring market integrity. A strong, forward-thinking strategy will unlock trillions in economic value, strengthen national security, and position the U.S. as the undisputed leader in the digital age.

Digital Assets Strategy

<h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">1. Taxonomy: Defining Digital Asset Classes</h3>Establishing a clear, universally understood taxonomy of digital assets is critical to advancing policy and fostering innovation.<ul style="margin:0 0 1.3em 0;padding-left:1.4em;line-height:1.75;"><li style="margin-bottom:0.4em;">Digital Commodity – An asset without an issuer, backed by digital power (e.g., Bitcoin).</li><li style="margin-bottom:0.4em;">Digital Security – An asset with an issuer, backed by a security (e.g., equity, debt, derivatives).</li><li style="margin-bottom:0.4em;">Digital Currency – An asset with an issuer, backed by fiat currency.</li><li style="margin-bottom:0.4em;">Digital Token – A fungible asset with an issuer, offering digital utility.</li><li style="margin-bottom:0.4em;">Digital NFT – A non-fungible asset with an issuer, offering digital utility (Non-Fungible Token).</li><li style="margin-bottom:0.4em;">Digital ABT – An asset with an issuer, backed by a physical asset (e.g., gold, oil, agricultural commodities).</li></ul><h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">2. Legitimacy: Establishing Rights and Responsibilities</h3>Creating a robust framework of rights and responsibilities is essential for issuers, exchanges, and owners to engage in digital asset markets with confidence.Path to Legitimacy: Establish a global, real-time, and uninterrupted process for issuing, trading, and owning digital assets by individuals, corporations, and machines.<ul style="margin:0 0 1.3em 0;padding-left:1.4em;line-height:1.75;"><li style="margin-bottom:0.4em;">Issuers — Rights: the right to create and issue digital assets. Responsibilities: ensure fair disclosure and ethical behavior.</li><li style="margin-bottom:0.4em;">Exchanges — Rights: the right to custody, trade, and transfer assets between clients and other exchanges. Responsibilities: publish asset disclosures, protect client assets, and avoid conflicts of interest.</li><li style="margin-bottom:0.4em;">Owners — Rights: self-custody, trade, and transfer their assets. Responsibilities: comply with applicable local laws.</li></ul>Foundational Principle: No one has the right to lie, cheat, or steal. All participants are civilly and criminally responsible for their actions.<h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">3. Practicality: Rational Compliance to Empower Innovation</h3>Digital asset regulation must prioritize efficiency and innovation over friction and bureaucracy.<ul style="margin:0 0 1.3em 0;padding-left:1.4em;line-height:1.75;"><li style="margin-bottom:0.4em;">Issuance Compliance: Limit costs to no more than 1% of AUM to issue an asset.</li><li style="margin-bottom:0.4em;">Maintenance Compliance: Limit costs to no more than 10 basis points annually to maintain an asset listing.</li></ul>Goal: Enable exponential improvements in cost, speed, quality, and accessibility via free-market competition and innovation.<h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">4. Vision: A Capital Markets Renaissance</h3>The United States has an opportunity to catalyze a 21st-century capital markets renaissance, unleashing trillions of dollars in value creation.Investor Opportunities: Enable access to thousands of digital assets, including:<h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">5. Opportunity: Establishing the United States as the Global Digital Leader</h3>A strategic digital asset policy can strengthen the US dollar, neutralize the national debt, and position America as the global leader in the 21st-century digital economy.<h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">Conclusion: Seizing the Digital Assets Opportunity</h3>By establishing a clear taxonomy, a legitimate rights-based framework, and practical compliance obligations, the United States can lead the global digital economy. A capital markets renaissance fueled by digital assets will unlock trillions in wealth, empower millions of businesses, and solidify the US dollar as the foundation of the 21st-century digital financial system.

Digital Assets Framework

Bitcoin: A Peer-to-Peer Electronic Cash System

In What Is Money? The Saylor Series, Robert Breedlove and I begin with a simple question and follow it through the history of civilization, technology, economics, and Bitcoin.The answer is straightforward: money is economic energy.Human beings invest time, intelligence, labor, and natural resources to create value. Money is the technology that allows us to store that value, transport it through time, and transfer it across space.Money is not merely a medium of exchange. Its deeper purpose is to preserve the product of your life until you choose to use it.This gives us a simple way to evaluate every monetary system: how effectively does it conserve economic energy?<h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">Civilization Is an Energy Story</h3>The history of civilization is the history of humanity learning to channel energy more efficiently.Fire allowed us to transform chemical energy. Missiles allowed us to project kinetic energy. Hydraulics redirected gravitational energy. Steel, petroleum, electricity, refrigeration, computing, and telecommunications extended the reach of human intelligence.Protocols multiplied the power of these technologies. Standardized roads, measurements, languages, electrical systems, and computer networks allowed millions of people to coordinate without renegotiating the rules every time they interacted.The recurring pattern of technological progress is simple: harder, smarter, faster, stronger. We create stronger materials, smarter machines, faster networks, and more resilient systems. Each innovation allows us to produce more while expending less.Money is also a technology. It is a protocol for coordinating economic activity and storing the energy generated by civilization. The question is whether our monetary technology has evolved as effectively as our other technologies.<h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">The Monetary Test</h3>Imagine that you possess $100 million of economic energy.<ul style="margin:0 0 1.3em 0;padding-left:1.4em;line-height:1.75;"><li style="margin-bottom:0.4em;">Can you transport it 100 years into the future?</li><li style="margin-bottom:0.4em;">Can you move it across an ocean?</li><li style="margin-bottom:0.4em;">Can you carry it through a hostile political jurisdiction?</li><li style="margin-bottom:0.4em;">Can you transfer it to another person without relying on a bank, government, corporation, or custodian?</li></ul>How much of the original $100 million arrives?Inflation, taxation, storage costs, custody fees, transaction friction, counterparty risk, political intervention, and confiscation are all forms of monetary entropy. They drain energy from the system.Good money conserves energy. Bad money dissipates it.<h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">Gold Is Physical Money</h3>For thousands of years, gold was humanity's best monetary technology.Gold is durable, recognizable, divisible, and relatively scarce. It cannot be printed by decree. It allowed people to preserve wealth better than commodities that spoiled, corroded, or could be produced easily.But gold remains a physical commodity, and physicality creates friction.Gold has mass. It is expensive to transport, secure, divide, authenticate, and audit. The more gold you own, the greater your security burden becomes. Large quantities invite seizure, confiscation, and violence.Gold also suffers from an oracle problem. Once gold enters the financial system, most people no longer possess the metal directly. They possess a claim on gold held by a custodian. Someone must be trusted to verify that the gold exists and has not been pledged to someone else.Its supply is not a closed system. Higher prices create incentives for additional exploration, mining, and production.Gold is hard money, but it is mechanically defective money. It can preserve economic energy, but it cannot move that energy efficiently through time and space.<h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">Fiat Is Political Money</h3>Fiat currency improved upon gold's portability.Paper claims and electronic balances move faster than metal. Fiat enabled modern banking, credit, securities, commerce, and large-scale economic coordination.But fiat solved gold's mechanical problem by introducing a political problem.The integrity of fiat currency depends upon institutions. Its supply, interest rates, and rules are controlled by governments and central banks. The system can be altered by political discretion.<ul style="margin:0 0 1.3em 0;padding-left:1.4em;line-height:1.75;"><li style="margin-bottom:0.4em;">The rules can change.</li><li style="margin-bottom:0.4em;">The supply can expand.</li><li style="margin-bottom:0.4em;">Accounts can be frozen.</li><li style="margin-bottom:0.4em;">Transfers can be blocked.</li><li style="margin-bottom:0.4em;">Purchasing power can be diluted.</li></ul>Fiat is therefore a high-entropy monetary storage system. It is effective for short-term transactions, but unreliable for preserving economic energy across decades.Refrigeration allowed civilization to remove entropy from food and preserve its energy for longer periods. Fiat does the opposite to money. It allows stored economic energy to spoil.Gold is defective because of its mechanical nature. Fiat is defective because of its political nature.<h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">Bitcoin Is Digital Monetary Energy</h3>The invention of computers, digital networks, and cryptography created the components necessary for a new monetary system. Bitcoin combined them into the first digitally engineered monetary network.Bitcoin dematerializes monetary property. It gives us an asset with no physical mass, no central issuer, and a supply governed by a public protocol rather than political discretion. It transforms property into information.Economic energy can be stored behind cryptographic security, transported through a global communications network, and settled without depending upon a trusted intermediary.Bitcoin is digital gold, but it is more useful to understand it as digital monetary energy.<ul style="margin:0 0 1.3em 0;padding-left:1.4em;line-height:1.75;"><li style="margin-bottom:0.4em;">It is harder because its supply cannot be expanded arbitrarily.</li><li style="margin-bottom:0.4em;">It is smarter because it can be integrated with software and extended through additional layers.</li><li style="margin-bottom:0.4em;">It is faster because digital property can move across the world at the speed of information.</li><li style="margin-bottom:0.4em;">It is stronger because every participant with capital invested in the network has an incentive to defend it.</li></ul>Bitcoin is designed to channel monetary energy across time and space with less leakage than any previous system.<h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">Proof of Work Anchors Bitcoin in Reality</h3>Proof of work is not incidental to Bitcoin. It is the bridge between the digital monetary network and the physical world.Mining transforms energy and computing power into security. It makes rewriting the ledger costly and forces participants to compete openly under the same rules.There is no gatekeeper who can be persuaded, bribed, or coerced into changing the history of the network.Proof of work also creates an economic relationship between Bitcoin and the global energy system. Miners can operate near stranded or underutilized energy sources, converting otherwise difficult-to-transport energy into digital value.Energy producers become economically aligned with Bitcoin. Technology companies develop better hardware. Investors fund infrastructure. Jurisdictions compete for mining activity, employment, and tax revenue.The network recruits its own defenders.<h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">Bitcoin Is Cybernetic Life</h3>Bitcoin is more than static software. It is an adaptive network composed of miners, nodes, investors, engineers, exchanges, energy producers, companies, and users.Each participant responds to economic incentives.Threats attract investment in defense. Competition drives more efficient mining technology. Political pressure encourages geographic distribution. Rising value attracts more capital, infrastructure, and talent.The network becomes stronger because it is attacked.In this sense, Bitcoin behaves like cybernetic life. Its protocol is the genetic code. Its participants compete, adapt, and evolve around it.The book identifies seven mutually reinforcing layers of Bitcoin security: energy, technology, politics, finance, network effects, spatial distribution, and time.The longer Bitcoin survives, the more credible its survival becomes. The more value it secures, the greater the incentive to protect it.<h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">Simplicity Is a Feature</h3>Bitcoin's limited functionality is one of its greatest strengths.A monetary base layer should not attempt to perform every possible financial or commercial function. Each additional feature creates complexity and expands the attack surface.Bitcoin is more like a single-celled organism than an elaborate machine. It is optimized to perform one critical function: maintain a secure ledger of scarce digital property.Its simplicity supports survivability.Bitcoin does not need to process every retail payment directly. It can serve as the monetary foundation while faster networks, banks, wallets, credit systems, and payment applications operate above it.Currency is an application of money.People can keep a small portion of their wealth in transactional currency while storing the majority in a superior monetary asset. Bitcoin can function as a high-frequency store of value and a low-frequency settlement network, while other systems provide speed, convenience, credit, and financial services.The base layer provides integrity. The higher layers provide functionality.<h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">Digital Property Creates Sovereignty</h3>Throughout history, property rights have depended upon institutions and physical force.Land can be taxed or seized. Gold can be confiscated. Bank accounts can be frozen. Securities depend upon custodians, courts, and governments.Bitcoin creates a different form of ownership.A private key establishes control over digital property without requiring permission from a central authority. Ownership can be verified mathematically rather than politically.Bitcoin therefore offers a new form of sovereignty: the ability to preserve and direct economic energy according to your own purpose.It can cross borders. It can survive institutional failure. It can be divided, transferred, and secured without revealing a physical location.Bitcoin represents property rights converted into information.<h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">Bitcoin Changes More Than Money</h3>Once Bitcoin exists as digital monetary property, an entire economy can develop around it.Companies can hold it as treasury capital. Banks can build credit products upon it. Investors can create securities, loans, derivatives, and savings instruments tied to it. Payment networks can use it for global settlement. Trusts and endowments can use it to preserve resources across generations.Hardware manufacturers can integrate Bitcoin into devices. Energy companies can monetize stranded power. Applications can use Bitcoin to establish identity, reputation, and economic accountability.Social networks could require participants to place a small amount of value at risk, making bots, scams, spam, and malicious activity more expensive. Bitcoin could provide cyberspace with something it has always lacked: consequences.The internet gave the world a protocol for moving information. Bitcoin gives the world a protocol for moving value.It can become the economic foundation for a safer, more accountable, and more productive digital civilization.<h3 style="font-size:1.25em;font-weight:600;margin:2em 0 0.6em 0;line-height:1.3;">The Engineering Solution to Money</h3>The central question is not whether Bitcoin can purchase a cup of coffee.The central question is whether Bitcoin can preserve economic energy better than the available alternatives.<ul style="margin:0 0 1.3em 0;padding-left:1.4em;line-height:1.75;"><li style="margin-bottom:0.4em;">Can it transport $100 million across 100 years?</li><li style="margin-bottom:0.4em;">Can it move wealth across political and geographic domains?</li><li style="margin-bottom:0.4em;">Can it protect property from arbitrary dilution, seizure, and corruption?</li><li style="margin-bottom:0.4em;">Can it provide a stable foundation upon which faster and more sophisticated financial systems can be constructed?</li></ul>Gold monetized physical scarcity. Fiat monetized political credit. Bitcoin monetizes digital scarcity.Human civilization advances when we discover better methods for capturing, conserving, and channeling energy. Money is the highest form of energy human beings can channel because it commands our time, labor, technology, and natural resources.Bitcoin is the engineering solution to the problem of money. Money is energy. Bitcoin is digital monetary energy.

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