Michael Saylor Proposes Rules Letting Banks Lend Against Bitcoin

The choice between holding bitcoin directly and using a custodian is one of five rights he proposes for digital assets. Saylor says owners should be able to hold assets themselves or select a provider. More banking options, in his view, would make bitcoin useful for customers who want financial services alongside ownership.

Why He Wants Banking Rules Reviewed

Banks face different risks when they safeguard an asset for a customer, lend against it, or buy it for their own balance sheets. Saylor argues that regulation should treat those activities separately. He calls for a review of accounting, supervisory, and capital rules that he believes make bitcoin services unnecessarily difficult.

As one example, he cites the Basel framework’s 1,250% risk weight for Group 2b cryptoasset exposures, a category for cryptoassets that fail the framework’s classification conditions and its hedging recognition criteria. A risk weight affects how much capital a bank must hold against an exposure; it is not a 1,250% tax or charge on a customer loan. The classification covers specified bank exposures and should not be read as a single rule governing every custody arrangement or bitcoin-backed loan.

Saylor wants policymakers to assess the activity and its actual risks when setting requirements. His proposal does not remove the need for banks to evaluate collateral, protect customer assets, or manage losses. It calls for a regulatory path he considers commercially workable.