Crypto needs ‘adult supervision’ and turmoil to ‘grow up’ – MicroStrategy co-founder
High-profile crypto bankruptcies and a solid price crash are necessary evils to help the industry grow, while greater regulation is a must, according to MicroStrategy co-founder Michael Saylor.
In a Feb. 3 interview on CNBC’s Squawk on the Street, Saylor weighed in on potential incoming crypto regulation in the U.S. following the bankruptcy of FTX, saying:
“The crypto meltdown was painful in the short term, but it is necessary in the long term for the industry to grow up.”
He added that the industry “has some good ideas” — suggesting one was the Bitcoin (BTC) Lightning Network — but added some in the room “implemented those good ideas in an irresponsible way.”
Saylor said the crypto space needs guidance from entities long involved in the traditional financial markets and input from regulators — particularly the United States Securities and Exchange Commission (SEC).
“What [the industry] need is adult supervision. It needs Goldman Sachs and Morgan Stanleys and BlackRocks to get into the business. It needs clear guidelines from Congress. It needs clear driving rules from the SEC.”
This “meltdown,” according to Saylor, educated many on crypto while also revealing that it is “time for the world to provide a constructive, transparent framework for digital assets” so that the financial system can move “into the 21st century.” .
Saylor on Munger’s cryptocriticism
Saylor also responded to criticism from Charlie Munger, vice chairman of insurance and investment company Berkshire Hathaway, saying the 99-year-old investment veteran should take time to study Bitcoin.
On February 1, Munger opined that crypto is “not a currency, not a commodity and not a value” instead of calling it “gambling” and argued that the US should “obviously” introduce laws to ban crypto.
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Saylor agreed that Munger’s crypto criticism was not “totally off,” but there are “10,000 crypto tokens that are not gambling,” adding:
“Charlie and the other critics, they are members of the Western elite, and they are constantly being asked for an opinion on Bitcoin, and they haven’t had time to study it.”
He added that if Munger “spent 100 hours studying” Bitcoin, “he would be more bullish on Bitcoin than I am.”
Saylor pointed to emerging markets such as Lebanon, Argentina and Nigeria that have high crypto adoption rates and use cases ranging from inflation protection to money transfers.
“I’ve never really met anyone […] who spent some time thinking about what wasn’t excited about Bitcoin.”
