Venture capitalist Tim Draper has proposed a new regulatory framework beyond the CLARITY and GENIUS Acts. Speaking in a recent interview, Draper called for a third crypto act that goes beyond existing legislation and enables companies to run payments, taxes, and operations entirely on the Bitcoin network.
The proposal builds on what he described as earlier phases of crypto regulation, first around decentralized finance and Bitcoin-based systems, and second around stablecoins. In his view, the next step is a framework that allows full business functionality on-chain.
A System Built on Bitcoin
Draper’s idea centers on removing friction from financial operations by embedding them directly into blockchain infrastructure. Under this model, businesses would no longer rely on traditional intermediaries. Instead, transactions, accounting, and tax obligations would be handled automatically on-chain.
He argued that such a structure could eliminate the need for roles like accountants, auditors, bookkeepers, and certain legal and tax functions. Payments would be executed instantly, while taxes could be deducted and routed automatically, reducing administrative overhead.
The broader goal is to create a system where businesses can function natively on Bitcoin without relying on legacy financial rails. The proposal would also broaden Bitcoin’s role in global finance, from a store of value to a foundation for economic activity.
Draper suggested that adoption would evolve gradually. Businesses may first accept Bitcoin alongside fiat, before some eventually transition to accepting Bitcoin exclusively. If that holds true, reliance on fiat currencies could decline over time.
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AI, Regulation, and Market Outlook
Draper also highlighted the growing convergence between artificial intelligence and blockchain systems. He described a future where automated systems, including robots, transact with each other using Bitcoin. Machines operating across supply chains would require a native digital payment layer, which Bitcoin could provide.
Despite this vision, Draper argued that regulation remains a key barrier. While acknowledging recent progress, he maintained that current frameworks do not go far enough to support fully on-chain business operations. He called for policymakers to adopt more comprehensive rules that enable Bitcoin-native systems to function at scale.
Draper also reiterated his long-standing bullish outlook, maintaining that Bitcoin could reach $250,000. He linked this to supply dynamics following the halving and growing adoption, suggesting that Bitcoin will continue to rise against fiat currencies over time.
Draper’s “third crypto act” proposal outlines a system-level shift in how businesses could operate. By integrating payments, taxation, and operations directly on-chain, the model would remove intermediaries and streamline economic activity. Additionally, it would take Bitcoin toward the next step in its evolution as an asset and financial infrastructure.
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Temitope Olajide
