US Crypto czar Sacks says banks, crypto will merge into ‘one digital asset industry’

Michael Sacks, the US Treasury Department’s Senior Advisor for Digital Assets and Crypto, recently presented a forward-looking vision for the American financial landscape, predicting the eventual convergence of traditional banking and the burgeoning crypto sector into a singular ‘digital asset industry.’

Speaking on the need for clearer regulatory pathways, Sacks suggested that the current dichotomy between Wall Street institutions and decentralized finance entities is temporary. He argued that as blockchain technology and tokenization become critical components of standard financial plumbing, major financial institutions will adopt these tools, erasing the distinction between ‘crypto industry’ participants and ‘traditional finance’ players.

Sacks emphasized that this merger would not be a victory for one side over the other, but rather an evolutionary step driven by technological necessity. As banks seek efficiency in payments, asset management, and cross-border transactions, the inherent benefits of distributed ledger technology (DLT) will force integration. This integration is expected to accelerate initiatives like the tokenization of real-world assets (RWA) and the establishment of new, faster payment rails.

The regulatory ramifications of this predicted merger are significant. If the industries operate as one, Sacks noted, the existing patchwork of regulations—which currently treats banks and crypto firms as separate regimes—must evolve into a unified and consistent framework. This harmonization is seen as crucial for mitigating systemic risk while simultaneously fostering innovation, a delicate balance the Treasury Department is currently navigating. The ultimate goal, Sacks stated, is to prepare the US financial system to lead globally in a fully digitized, interconnected economy.

Source: US Crypto czar Sacks says banks, crypto will merge into ‘one digital asset industry’