Michael Saylor publishes policy recommendations for a thriving digital economy, with a focus on banks.

PANews reported on September 26 that Michael Saylor published a long article, “Policy Recommendations for a Prosperous Digital Economy,” calling for BTC to be treated as “Digital Capital” and for banks to be allowed to custody BTC and provide secured loans using BTC as collateral under clear and actionable rules. He also said insurance companies should have feasible paths to include digital capital in balance sheets and product design.

Bitcoin is a blockchain-based digital asset; the proposal treats BTC not merely as a tradable token but as a potential form of capital that could support regulated financial services. This framing places BTC within the same policy conversation as banks, insurers, collateral arrangements, and balance-sheet management, rather than treating it only as a speculative instrument. Custody, secured lending, and balance-sheet inclusion are standard functions of banks and insurers, so the proposal centers on whether existing rules can be clarified to accommodate digital assets without creating ambiguous supervisory expectations.

Unlocking BTC collateral without asset sales

Saylor argued that if more financial institutions take part in BTC custody and credit services, BTC holders would gain more ways to use capital without selling assets. He suggested that this could become an important driver of growth for the crypto industry.

The idea resembles the collateralized lending model used in broader finance: an owner can access liquidity by pledging an asset, while retaining exposure to that asset. For digital capital, the practical question is whether institutions can operate custody and loan mechanics with sufficient legal certainty, valuation processes, and risk controls. If such services become available under clear rules, BTC holders could potentially use their holdings as a financial resource without needing to liquidate them.

Basel rules and the 1250% risk weight

He pointed to the Basel Accords, noting that some crypto asset exposures currently carry a 1250% risk weight. In his account, that figure shows how existing capital regulation can limit digital assets. He called for regulators to evaluate assets according to their actual attributes, though the excerpt did not provide the full text of that recommendation.

Basel-type capital rules are generally designed to make banks hold enough capital against potential losses. A higher risk weight can make an exposure more capital-intensive for a bank, which may reduce the range of products banks are willing to offer. The argument therefore links regulatory treatment to market participation: clearer, attribute-based rules could influence whether digital assets are held, financed, or integrated into institutional workflows. Rather than treating all digital assets the same way, the article suggests that supervisors may need to consider the characteristics of specific assets when setting capital requirements.

From a policy perspective, the piece emphasizes three points: digital capital should be treated as a distinct asset class with practical financial uses; banks and insurers need clear rules before expanding custody, lending, or balance-sheet activities; and capital standards should not automatically block digital assets without considering their characteristics.

Risk Disclosure

This article is an information summary and does not constitute investment advice or a recommendation to buy, sell, or hold any digital asset. Cryptocurrency prices are highly volatile and can change rapidly due to market sentiment, regulation, liquidity, and macroeconomic factors. Readers should make independent judgments, assess their own risk tolerance, and consult qualified professionals before making any financial decisions. Past performance does not guarantee future results, and any exposure to crypto assets may lead to substantial losses.