SEC’s Crackdown on Binance and Coinbase Paves the Way for Bitcoin Dominance, says MicroStrategy Founder

• Michael Saylor, Founder and Executive Chairman of MicroStrategy, believes the crypto industry is destined to become mainly focused on Bitcoin, following recent enforcement actions by U.S. regulators.
• The U.S. SEC recently filed lawsuits against Binance and Coinbase, the two biggest crypto exchanges by market capitalization, none of which mention Bitcoin.

MicroStrategy’s Founder and Executive Chairman, Michael Saylor, contends that the future of the cryptocurrency industry is destined to be heavily concentrated around Bitcoin (BTC). He suggests this outlook has been informed by recent enforcement actions taken by U.S. regulators.

“MicroStrategy has maintained since 2020 that Bitcoin is the only institutional-grade asset,”

Saylor asserted during a Bloomberg interview. He elucidated further, stating,

“The regulatory landscape is hinting at a lack of a feasible trajectory for cryptocurrencies. Thus, the entire industry is seemingly set to coalesce into a Bitcoin-centric industry, supplemented by a limited number of other proof-of-work tokens.”

Regulatory clarity is going to drive #Bitcoin adoption by eliminating the confusion & anxiety that has been holding back institutional investors. Bitcoin dominance will continue to grow as the #Crypto industry rationalizes around $BTC and goes mainstream. pic.twitter.com/Foq4lpderj

— Michael Saylor⚡️ (@saylor) June 13, 2023

Saylor’s commentary comes in the wake of lawsuits filed against Binance and Coinbase, the leading cryptocurrency exchanges in terms of market capitalization, by the U.S. Securities and Exchange Commission (SEC). The filings reference 19 tokens, with Bitcoin notably absent. Earlier, SEC Chairman Gary Gensler asserted that Bitcoin is, in fact, a commodity.

MicroStrategy has been a prominent Bitcoin advocate since 2020, asserting the digital currency to be a superior store of value compared to gold. The company currently holds roughly 140,000 Bitcoins, with a value estimation of about $4 billion. Notably, in March 2023, Saylor unsuccessfully sought to dismiss allegations that he failed to pay personal income taxes, interest, and penalties due in Washington, D.C.

However, the court dismissed the charges that Saylor and MicroStrategy had conspired to violate the law.

Saylor remarked on the competition within the cryptocurrency market, where approximately 25,000 other digital currencies are vying to position themselves as Bitcoin equivalents or superior alternatives. He stated that the public now comprehends that the successor to Bitcoin is, in fact, Bitcoin itself. As a result, Saylor expects Bitcoin’s value to increase tenfold, reaching $250,000.

Saylor expressed confidence in the evolving perceptions within crypto exchanges, forecasting their eventual realization of Bitcoin’s dominance in the sector.

“Their business models will remain intact when Bitcoin’s value increases tenfold,”

he confidently predicted.