Strategy co-founder and Executive Chairman Michael Saylor urged the cryptocurrency industry to focus on the mass adoption of digital financial products after the U.S. Senate failed to advance the CLARITY Act. He said widespread use could provide an additional safeguard for the industry against future changes in regulatory policy.

Saylor calls for adoption alongside legal clarity

In a post titled “Digital Assets After CLARITY: The Best Protection Is Adoption,” Saylor said the industry could move forward under rules administered by the U.S. Securities and Exchange Commission, the Commodity Futures Trading Commission, the U.S. Treasury and banking regulators, despite restrictions contemplated in a compromise version of the CLARITY Act.

“Our safest path forward is to create products that delight customers and deploy them broadly,” Saylor said.

He argued that lower costs, easier access to financial services and greater control over funds could build public support for the continued development of digital assets.

Saylor also emphasized the importance of legal clarity but warned against writing restrictions into legislation. He cited a September compromise on the CLARITY Act that included limits on providers paying users rewards for holding payment stablecoins while permitting some rewards tied to qualified activity.

He distinguished between protecting banks from liquidity problems and shielding them from competition. In Saylor’s view, financial stability requires oversight, while competition depends on customers being able to choose better services.

Saylor also pointed to the GENIUS Act, which already restricts stablecoin issuers from paying interest and yield, and to the CLARITY Act’s innovation sandbox. He said the sandbox’s limits of 25 employees and 20 approved projects per year illustrated how legislation could predetermine the scale of an experiment before the market had an opportunity to demonstrate its potential.

Bitcoin, stablecoins and financial infrastructure

Saylor said a significant share of the opportunity to develop digital assets already exists within the current legal framework. He said expanded bank custody and bitcoin-backed lending could broaden access to bitcoin and deepen liquidity.

He also said STRC, Strategy’s regulated financial instrument, could gain further opportunities for distribution, tokenization and use as collateral. New trading venues, longer trading hours and simpler share transfers could expand access to MSTR, he added.

Saylor identified Coinbase as an example of a regulated platform that could integrate cryptocurrencies, securities, custody, payments and financing. He said further development of USDC and other digital-dollar infrastructure could support faster settlement, programmable payments and stablecoin use in global trade.

He also cited recent regulatory actions. On September 17, the SEC granted conditional relief for onchain trading in certain tokenized stocks, while CFTC Chair Michael Selig said he was prepared to use existing authorities to advance regulated cryptocurrency trading and onchain finance.

Saylor said the industry should use 2027 and 2028 to scale useful products, turn temporary regulatory relief into long-term rules and pursue targeted legislation.

“The best protection for digital innovation is a public that benefits from it,” he said.

Bill remains on the agenda

The CLARITY Act failed a procedural vote by 49 votes to 50, but the bill has not disappeared from the legislative agenda. JPMorgan analysts said its prospects this year were extremely limited and that market attention could shift to the SEC and CFTC.

Democratic Senator Elizabeth Warren said she was ready to work on a new cryptocurrency bill. Bitwise Chief Investment Officer Matt Hougan described the CLARITY Act’s failure as “a speed bump,” rather than a roadblock for the market.

Source: Incrypted