The crypto industry, known for its ambitious intentions to democratize finance and break the traditional financial system’s monopoly, is witnessing a significant twist in the narrative. Some major Wall Street players have experienced an apparent shift in perspective, extending their reach to embrace the very industry that once seemed antagonistic.
One of the most noteworthy examples is BlackRock’s founder and CEO, Larry Fink, who previously labeled Bitcoin as “an index of money laundering” back in 2017. Six years later, he submitted an application for a Bitcoin spot ETF with the US SEC, lauding Bitcoin’s ability to digitize gold and pioneer the revolutionizing finance.
Another conversion comes from billionaire financier Ken Griffin who was recorded referring to the crypto sector as a “jihadist call” against USD. Now, his electronic trading company, Citadel Securities, supports a platform to facilitate institutional investors to trade digital currencies.
Hence, the narrative seems to be veering towards Wall Street’s assimilation into the crypto industry, united in a common financial frontier. An interesting paradox, however, is the fact that this amalgamation seems to be playing out precisely when the crypto sector appears weakened, grappling with a year-long winter, precipitated by price drops and regulatory clampdowns.
The regulatory cocoon enveloping the crypto sector in the US has resulted in company meltdowns, bankruptcies, and diminished interest in digital assets. Yet, amid this apparent turmoil, traditional financial powerhouses discern an opportunity. They aspire to capitalize on this evolution by offering a stripped-down catalog of crypto products and services.
While entrepreneurs of the crypto industry face criminal charges and celebrity endorsers endure public humiliation, conventional finance companies navigate the turbulence by treating digital assets akin to securities, ensuring local securities law compliance. Such a paradigm shift lends them immunity against the regulatory onslaught.
However, the question hangs in the air: will the crypto industry’s original ambition to democratize finance weather through this change? VanEck’s Matthew Sigel hints optimistically at the survival instinct of the assets, suggesting that assets often transfer from weak to robust hands during bear markets. A phenomenon that seems to be unfolding in the cryptocurrency market.
The idea that the essence of cryptocurrencies could potentially morph under the weight of this adaptation raises some eyebrows. But, as the future remains unwritten, we can only observe, assess, and speculate. The real impact on the potential of blockchain technology and its ability to distribute power and wealth more equitably remains yet to be seen.
Source: Cryptonews
