Microstrategy's founder Michael Saylor met with the U.S. Securities and Exchange Commission's (SEC) newly unveiled crypto task force t o discuss how digital assets should be classified and regulated in the United States.

The discussion on Feb. 21 covered defining different types of digital assets, setting clear rules for issuers and exchanges, and ensuring regulations encourage innovation rather than stifle it.

SEC established a Crypto Task Force on Jan. 21, under Acting Chairman Mark T. Uyeda. Led by Commissioner Hester Peirce, the task force aims to develop a comprehensive and clear regulatory framework for crypto assets. Its mission includes defining regulatory boundaries, providing registration pathways, and enhancing disclosure frameworks to foster innovation while ensuring investor protection.

A key focus of the discussion was creating a clear classification system for digital assets.

According to the SEC’s framework, Bitcoin is considered a digital commodity because it has no central issuer and is backed by mining power. Other categories include digital securities, digital currencies, digital tokens, and NFTs, each with different characteristics and regulatory implications.

Establishing rules for issuers, exchanges, and owners

The task force discussed the need for clear rights and responsibilities for different players in the digital asset market. Issuers would have the right to create and issue digital assets but would need to ensure fair disclosure and ethical practices. Exchanges would be responsible for custody, trading, and protecting client assets. Owners would have full control over their holdings but must comply with local laws.

The framework stresses that "No one has the right to lie, cheat, or steal. All participants are civilly and criminally responsible for their actions."

The SEC framework suggests that issuing a digital asset should cost no more than 1% of its total value, and annual compliance costs should be capped at 0.1%. Regulators would not directly oversee the issuance of new assets but would allow exchanges to manage compliance.

The SEC’s framework predicts that with the right policies, cryptocurrency markets could grow from $25 billion to $10 trillion, while global digital capital markets could expand from $2 trillion to $280 trillion.

The framework also suggests that a strategic Bitcoin reserve could generate between $16 trillion and $81 trillion in wealth for the U.S. Treasury.

Strategy adds $2 billion in Bitcoin, bringing holdings to nearly 500,000 BTC

Strategy, formerly known as MicroStrategy, on Feb. 24 acquired 20,365 Bitcoin for nearly $2 billion, purchasing the crypto at an average price of $97,514 per BTC.