Mr. Giancarlo’s presentation analyzed the current rise of the digital asset industry as part of a wave of technological innovation through an “internet of value” as compared to previous waves of internet innovation that centered on connecting information and things. He further noted that crypto can essentially be defined as various computer protocols using distributive ledger technology and cryptography to record ownership and transfer of value over the internet.

Mr. Giancarlo also described the evolution of the public sector response to the private sector innovations in the digital asset industry from “cautious indifference to regulatory accommodation” and “now regulatory hostility.” Regarding the “crypto winter-” a number of bankruptcies in the crypto trading exchange industry, he observed that the promise of internet-based value transfers had gotten ahead of the development of the underlying infrastructure and was suffering from “generational status quo bias and technological anxiety.”

Mr. Giancarlo predicted that while some in Washington and on Wall Street remain resistant to the disrupting changes presented by the digital asset industry, the forces of technological change persist and will create opportunities for American banks to be leaders in this new architecture. To view a recording of the discussion, click here.