Strategy Executive Chairman Michael Saylor says bitcoin's push into the US financial system can keep advancing even after the Senate rejected the CLARITY Act. He expects regulators and banks to act under existing law while bitcoin recovers from the vote's fallout as the Federal Reserve raises rates.
Michael Saylor said bitcoin's institutional progress does not depend on Congress, one day after the Senate rejected cloture on the CLARITY Act by a 49-50 vote. The Strategy Executive Chairman argued on Sept. 16 that regulators, banks, and capital markets can keep moving without new legislation.
Saylor says bitcoin doesn't need Congress
According to Bitcoin News: "Progress need not wait for Congress." Saylor said he expects the SEC, CFTC, and Treasury to advance rules under existing law, banks to expand bitcoin custody and loans against it, and more capital to favor bitcoin and digital credit.
His case rests on regulators already acting independently of Congress. The SEC proposed Regulation Crypto Assets on Aug. 18, creating new exemptions for certain crypto investment contracts, while Treasury opened rulemaking for the stablecoin provisions of the GENIUS Act on Aug. 17.
Bitcoin recovers as the Fed hikes rates
Bitcoin fell more than 3% on Tuesday after the Senate vote, then erased those losses to trade up 0.2% at $76,212.1 on Wednesday as the Federal Reserve delivered its expected interest rate hike. The Fed lifted its target range by a quarter point to 3.75%-4.00%, the first increase since July 2023, and its updated projections point to a median policy rate of 4.1% by the end of 2026.
Other tokens fell harder than bitcoin, however. XRP slumped 10% while Ether shed 2.1% to $2,390.07 and Solana declined 3.2%.
Banks and Strategy's own bitcoin stake
Saylor pointed to banks as the next channel for bitcoin's expansion, expecting institutions to broaden custody services and bitcoin-backed lending. Strategy itself held 845,050 BTC as of Sept. 13 and has repurchased $139 million of STRC, one of its bitcoin-linked credit products.
Sources: Bitcoin.com News, Investing.com
Trading involves risk.
Risk Disclaimer
