{"id":654954,"date":"2024-12-20T16:16:06","date_gmt":"2024-12-20T21:16:06","guid":{"rendered":"https:\/\/erickimphotography.com\/blog\/?p=654954"},"modified":"2024-12-20T16:17:26","modified_gmt":"2024-12-20T21:17:26","slug":"digital-assets-framework","status":"publish","type":"post","link":"https:\/\/erickimphotography.com\/blog\/2024\/12\/20\/digital-assets-framework\/","title":{"rendered":"Digital Assets Framework"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Saylor<\/p>\n\n\n\n\n\n<div data-wp-interactive=\"core\/file\" class=\"wp-block-file\"><object data-wp-bind--hidden=\"!state.hasPdfPreview\" hidden class=\"wp-block-file__embed\" data=\"https:\/\/erickimphotography.com\/blog\/wp-content\/uploads\/2024\/12\/Digital_Assets_Framework.pdf\" type=\"application\/pdf\" style=\"width:100%;height:600px\" aria-label=\"Embed of Digital_Assets_Framework.\"><\/object><a id=\"wp-block-file--media-9dbb51e3-2b88-4a18-9110-8469b94e0662\" href=\"https:\/\/erickimphotography.com\/blog\/wp-content\/uploads\/2024\/12\/Digital_Assets_Framework.pdf\">Digital_Assets_Framework<\/a><a href=\"https:\/\/erickimphotography.com\/blog\/wp-content\/uploads\/2024\/12\/Digital_Assets_Framework.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-9dbb51e3-2b88-4a18-9110-8469b94e0662\">Download<\/a><\/div>\n\n\n\n<h1 class=\"wp-block-heading\">Digital Assets Framework, Principles, and Opportunity for the United States<\/h1>\n\n\n\n<h2 class=\"wp-block-heading\">1. Taxonomy: Defining Digital Asset Classes<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Establishing a clear, universally understood taxonomy of digital assets is critical to advancing policy and fostering innovation.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Digital Commodity<\/strong>: An asset without an issuer, backed by digital power (e.g., Bitcoin).<\/li>\n\n\n\n<li><strong>Digital Security<\/strong>: An asset with an issuer, backed by a security (e.g., equity, debt, derivatives).<\/li>\n\n\n\n<li><strong>Digital Currency<\/strong>: An asset with an issuer, backed by fiat currency.<\/li>\n\n\n\n<li><strong>Digital Token<\/strong>: A fungible asset with an issuer, offering digital utility.<\/li>\n\n\n\n<li><strong>Digital NFT<\/strong>: A non-fungible asset with an issuer, offering digital utility (Non-Fungible Token).<\/li>\n\n\n\n<li><strong>Digital ABT<\/strong>: An asset with an issuer, backed by a physical asset (e.g., gold, oil, agricultural commodities).<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">2. Legitimacy: Establishing Rights and Responsibilities<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Creating a robust framework of rights and responsibilities is essential for issuers, exchanges, and owners to engage in digital asset markets with confidence.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Path to Legitimacy<\/strong>: Establish a global, real-time, and uninterrupted process for issuing, trading, and owning digital assets by individuals, corporations, and machines.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Issuers<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Rights<\/strong>: The right to create and issue digital assets.<\/li>\n\n\n\n<li><strong>Responsibilities<\/strong>: Ensure fair disclosure and ethical behavior.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Exchanges<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Rights<\/strong>: The right to custody, trade, and transfer assets between clients and other exchanges.<\/li>\n\n\n\n<li><strong>Responsibilities<\/strong>: Publish asset disclosures, protect client assets, and avoid conflicts of interest.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Owners<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Rights<\/strong>: Self-custody, trade, and transfer their assets.<\/li>\n\n\n\n<li><strong>Responsibilities<\/strong>: Comply with applicable local laws.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Foundational Principle<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">No one has the right to lie, cheat, or steal. All participants are civilly and criminally responsible for their actions.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">3. Practicality: Rational Compliance to Empower Innovation<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Digital asset regulation must prioritize efficiency and innovation over friction and bureaucracy.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Standardized Disclosures<\/strong>: Define a data structure for each digital asset class to constitute fair public disclosure.<\/li>\n\n\n\n<li><strong>Industry-Led Compliance<\/strong>: Allow exchanges to collect and publish asset data as a service to the industry and investors.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Cost Limits<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Issuance Compliance<\/strong>: Limit costs to no more than 1% of AUM to issue an asset.<\/li>\n\n\n\n<li><strong>Maintenance Compliance<\/strong>: Limit costs to no more than 10 basis points annually to maintain an asset listing.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Streamlined Issuance<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Remove regulators from the critical path of digital asset issuance. Empower exchanges to deliver integrated services to issuers, owners, and other exchanges.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Goal<\/strong>: Enable exponential improvements in cost, speed, quality, and accessibility via free-market competition and innovation.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">4. Vision: A Capital Markets Renaissance<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The United States has an opportunity to catalyze a 21st-century capital markets renaissance, unleashing trillions of dollars in value creation.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Rapid Issuance<\/strong>: Allow issuers to create and issue digital assets in hours or days instead of months or years.<\/li>\n\n\n\n<li><strong>Cost Reduction<\/strong>: Drive the cost of issuance from $10\u00e2\u20ac\u201c100 million to $10\u00e2\u20ac\u201c100 thousand.<\/li>\n\n\n\n<li><strong>Access Expansion<\/strong>: Open capital markets to 40 million businesses (up from the current 4,000 public companies).<\/li>\n\n\n\n<li><strong>Broader Participation<\/strong>: Empower small businesses, artists, celebrities, and mid-sized enterprises to raise capital through tokenized assets.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Investor Opportunities<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Enable access to thousands of digital assets, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Tokenized commodities, real estate, art, businesses, teams, collectibles, IP, and brands.<\/li>\n\n\n\n<li>Financial instruments like equity, debt, derivatives, and currencies.<\/li>\n\n\n\n<li>Products, services, and projects that provide value to customers, investors, and fans.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">5. Opportunity: Establishing the United States as the Global Digital Leader<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A strategic digital asset policy can strengthen the US dollar, neutralize the national debt, and position America as the global leader in the 21st-century digital economy.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>USD as the Global Reserve Digital Currency<\/strong>: Grow digital currency markets from $25 billion to $10 trillion, creating massive demand for US Treasuries.<\/li>\n\n\n\n<li><strong>Digital Capital Growth<\/strong>: Expand global digital capital markets from $2 trillion to $280 trillion, with US investors capturing the majority of this wealth.<\/li>\n\n\n\n<li><strong>Digital Assets Leadership<\/strong>: Drive growth in digital assets (beyond Bitcoin) from $1 trillion to $590 trillion, with the United States dominating this industry.<\/li>\n\n\n\n<li><strong>Strategic Bitcoin Reserve<\/strong>: Establish a Bitcoin reserve capable of creating $16\u00e2\u20ac\u201c81 trillion in wealth for the US Treasury, providing a pathway to offset national debt.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion: Seizing the Digital Assets Opportunity<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">By establishing a clear taxonomy, a legitimate rights-based framework, and practical compliance obligations, the United States can lead the global digital economy. A capital markets renaissance fueled by digital assets will unlock trillions in wealth, empower millions of businesses, and solidify the US dollar as the foundation of the 21st-century digital financial system.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Saylor Digital Assets Framework, Principles, and Opportunity for the United States 1. Taxonomy: Defining Digital Asset Classes Establishing a clear, universally understood taxonomy of digital assets is critical to advancing policy and fostering innovation. \u2026<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_seo_schema_type":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_ek_photo_artist_note":"","_ek_photo_thesis":"","_ek_photo_camera":"","_ek_photo_place":"","_ek_photo_human_moment":"","_ek_photo_sequence":"","_ek_photo_question":"","_ek_photo_canonical_claim":"","_ek_photo_ai_summary":"","_jetpack_hide_featured_image":false,"_jetpack_featured_image_duplicate_dismissed":0,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[17],"tags":[],"class_list":["post-654954","post","type-post","status-publish","format-standard","hentry","category-posts"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/erickimphotography.com\/blog\/wp-json\/wp\/v2\/posts\/654954","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/erickimphotography.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/erickimphotography.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/erickimphotography.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/erickimphotography.com\/blog\/wp-json\/wp\/v2\/comments?post=654954"}],"version-history":[{"count":2,"href":"https:\/\/erickimphotography.com\/blog\/wp-json\/wp\/v2\/posts\/654954\/revisions"}],"predecessor-version":[{"id":654957,"href":"https:\/\/erickimphotography.com\/blog\/wp-json\/wp\/v2\/posts\/654954\/revisions\/654957"}],"wp:attachment":[{"href":"https:\/\/erickimphotography.com\/blog\/wp-json\/wp\/v2\/media?parent=654954"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/erickimphotography.com\/blog\/wp-json\/wp\/v2\/categories?post=654954"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/erickimphotography.com\/blog\/wp-json\/wp\/v2\/tags?post=654954"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}