Gary Gensler about banks and crypto

The legendary head of the SEC, Gary Gensler, told Bloomberg about his attitude to various aspects of the commission’s work. Of course, I was particularly interested in the part of the interview devoted to crypto.

There was nothing new in principle, Gensler’s skepticism about the crypt is well known. I would have noted one seemingly minor phrase. The head of the SEC said that he was worried that banks are actively engaged in crypto. 

I rarely agree with Mr. Gensler, but now I can confirm: I also worry that banks have started to actively engage in crypto. True, the nature of worry is different.The head of the SEC is afraid that banks will use the crypt to abuse its capabilities and to work in a "gray" zone not covered by detailed legislation.

My other concern is that banks are seeking to incorporate cryptocurrency into the existing fiat system, which effectively rules out its modification. Banks are by nature natural opponents of the crypt. Today, banks are in a privileged position - financial transactions go only through bank accounts, which means that the banking system has enormous funds at its disposal. 

Cryptocurrencies do not need an intermediary bank, the account is managed only by the user.

This is a real threat to bankers. Naturally, the system will resist. One way to combat crypto is to incorporate it into the existing system, so the crypt simply technologically replaced the fiat, without affecting the fundamentals, morals and logic of modern finance. Hence the desire to turn cryptocurrencies into a legal, law-abiding and manageable tool. This is not easy - representatives of the growing crypto community are resisting from the opposite side.

There will be a serious struggle with an unpredictable outcome. My sympathies, of course, are with the crypto, and I have confidence that it will win. Well, we will help!

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