Sam Lyman

Chairman Powell has previously stated that bitcoin is "like gold—it's just virtual and digital." We agree. But this raises an important question: shouldn't digital gold be treated similar to physical gold on a bank's balance sheet? Under current bank regulations, it isn't. Bitcoin is treated like radioactive waste, with a 1,250% risk weight compared to gold's 0% risk weight. In layman's terms, this means that a bank holding $100 million of bitcoin must hold roughly $100 million of capital against it. As a consequence, banks often tell companies that own bitcoin to take their business somewhere else, driving capital and innovation offshore. This backwards approach runs counter to President Trump's stated goal of transforming the United States into a "Bitcoin superpower." BPI is committed to educating policymakers on how banks can effectively manage risk for bitcoin without closing their doors entirely. Our visit to the Fed today was the start of that journey.

AI & digital infrastructure —including bitcoin mining—are key drivers of the modern American economy. Great to share the stage with @RepNickBegich @BitcoinConner @JeffRundlet at the @DigitalChamber DC Blockchain Summit. 🇺🇸

Statement from the Bitcoin Policy Institute on CFTC Staff Letter No. 26-09: The CFTC's Market Participants Division got something important right today. In issuing a no-action letter to Phantom Technologies, the Division recognized a principle that should be foundational to digital asset regulation in the United States: providing software that enables users to access regulated markets is not the same thing as operating as a regulated intermediary. The facts here are straightforward. Phantom builds self-custodial wallet software. It proposed to expand that software so users could access CFTC-regulated derivatives through registered futures commission merchants and designated contract markets. Phantom would not hold customer assets, would not exercise discretion over order routing or execution, and would not generate trading signals. It would provide a front-end interface, a tool, that users control. The Division correctly concluded that this passive software function does not require introducing broker registration. That conclusion follows logically from the Commission's own history of Technology Service Vendor letters and from common sense: we do not regulate the wrench manufacturer as a mechanic. This matters beyond Phantom. Congress is actively debating where to draw the line between software infrastructure and regulated financial activity. The CLARITY Act's Section 109 protections for non-controlling blockchain developers, the Promoting Innovation in Blockchain Development Act's clarification of Section 1960 liability, and these legislative efforts all turn on the same core distinction the Division applied today. Staff Letter 26-09 demonstrates that the existing regulatory framework, properly interpreted, can accommodate this distinction without new legislation. That should give Congress confidence that the principle is workable and that codifying it is not a leap into the unknown. There is also a dimension to this that policymakers have barely begun to address. As agentic AI systems become capable of executing transactions, managing portfolios, and interacting with financial protocols on behalf of users, the question of when software crosses the line from passive tool to regulated actor will move from a crypto-specific concern to a market-wide one. The framework the Division applied here, focusing on whether the software exercises discretion and controls assets, rather than on whether it facilitates access to a market, is exactly the analytical lens regulators will need as autonomous software agents proliferate across financial services. Getting this right for self-custodial wallets today builds the conceptual infrastructure for getting it right for AI agents tomorrow. BPI commends the Division for applying a principled, activity-based analysis. We urge Congress to codify this approach in the CLARITY Act and to recognize that the distinction between code and control is not just a crypto issue. It is the regulatory question of the next decade.

Thought China had quit bitcoin? Think again. Despite its infamous bitcoin mining ban, the country is still 3rd globally in terms of hashrate. And one of its premier think tanks—a farm league for future CCP economists—is now republishing BPI research re: the role bitcoin can play as a hedge for central banks.

Wishcasting and blatant dishonesty from Sky News here:

WASHINGTON D.C. - Bitcoin Policy Institute releases the following brief on the latest legislative developments on a De Minimis exemption for Bitcoin transactions. We will continue to keep you informed as discussions develop.

Important Bitcoin Policy Update from D.C. 🇺🇸 The Federal Reserve just announced that next week they will be issuing a public proposal for how Banks should implement Basel risk weighting guidance for America’s largest banks. Bitcoin is currently treated as a toxic asset under Basel regulations, subject to a 1250% risk weighting, harsher than virtually all other asset classes. This risk weighting makes it extremely difficult for banks to provide financial services to Bitcoiners and Bitcoin companies. Once the Federal Reserve’s proposal is live, there will be a 90 day window to provide comments on the proposal. BPI will be reviewing this proposal closely and submitting a public comment to ensure that U.S. regulators get Bitcoin’s treatment right.

@CaitlinLong_ Thanks, Caitlin!

@SamLyman33 congrats!

BPI is a think tank for the Fourth Turning. The next American century depends on our ability to continue to lead in emerging monetary networks like Bitcoin and stablecoins. BPI is equipping our nation’s leaders to do exactly that. Thrilled to be joining the team as head of research. Thank you to @SecScottBessent and my friends and colleagues @USTreasury for an incredible tour in government. Incredibly excited for the next chapter at @bitcoinpolicy

"The bourgeoning monetary fight between the United States and China might be the catalyst for the next gold standard, but this one will be digital." What role will Bitcoin play in a multipolar world? BPI's @JakeLangenkamp answers this question in a must-read article:

@dmweisberger Thank you, Dave!

Congratulations Sam.

Stacking talent.

BPI continues to build out a deep bench of talent. We're incredibly lucky to have Sam join the team and I can't wait to see what he cooks up.

Outstanding! Congrats to a great guy @SamLyman33

@JohnEDeaton1 Thank you, John!

@ColeMacro Thank you, Matt! Excited to be on board.

@SamLyman33 Congrats on the new role - joining a great team with an important mission!

Huge get for BPI! Welcome to the team @SamLyman33

Enjoyed meeting with President @nayibbukele today at @POTUS’ Shield of the Americas summit in Doral, Florida.  I was glad to hear more about President Bukele’s pro-market reforms for El Salvador and his efforts to make El Salvador a digital assets hub. We will continue to work together to advance strategies to strengthen our hemisphere.

.@SecScottBessent's opening statement to House Financial Services Cmte.: "Since day one, President Trump has focused on building parallel prosperity—an era of economic expansion where Wall Street and Main Street can grow together."