Michael Saylor, executive chairman of Strategy Inc., has proposed a framework for digital tokens to help 10 million new companies raise capital. In a September 26 essay on company financing, Saylor argued that fundraising rules must become simpler and faster to match the pace of product development enabled by artificial intelligence.
Saylor expects AI to automate work and make established products obsolete, creating demand for new businesses and jobs. He contends that entrepreneurs who can build products with AI should have practical access to financing. If product development accelerates while fundraising remains slow and expensive, he argues, the economic gains from automation will be diminished.
Saylor's Token Proposal
His proposal centers on digital tokens as a fundraising mechanism under tailored offering rules. Saylor calls for clear issuance requirements, proportionate disclosures tied to risk levels, and channels for entrepreneurs to reach prospective investors. The goal is to reduce legal costs without eliminating ownership protections or fraud accountability.
Saylor distinguishes between digital tokens, digital currency, digital capital, and digital securities, arguing that policy should recognize their different economic functions. He contends that clear disclosures and enforceable ownership would help buyers assess offerings while remaining flexible for emerging business models.
Cost is central to his argument. Saylor maintains that financing a small business should not require extensive legal resources. Lower issuance costs could enable more founders to seek funding, though reaching 10 million companies would still depend on investor demand, viable products, and protective regulations.
Regulatory Context
The Securities and Exchange Commission has separately proposed crypto offering exemptions that would permit eligible offerings up to $5 million over four years or up to $75 million per 12-month period. Both proposals include disclosure conditions and antifraud rules.
Saylor's proposal calls for the SEC to make token issuance more accessible while Congress addresses digital asset rights where legislation is necessary. For founders, the practical question remains whether lawful offerings can reach investors at costs viable for early-stage companies.
