White House Crypto Czar: Banks and Crypto Will Merge Into One Industry
- David Sacks says banks are likely to enter crypto once U.S. market structure legislation is passed.
- Disagreement over stablecoin yield is delaying progress on the CLARITY Act.
- Sacks argues compromise is necessary to achieve regulatory parity and unlock broader adoption.
White House crypto adviser David Sacks has predicted that US banks will fully adopt crypto once long-delayed market structure legislation is approved by Congress. Speaking with CNBC at the World Economic Forum in Davos, Sacks said regulatory clarity would eliminate the divide between traditional finance and digital asset firms.
We’re not going to have a separate banking industry and crypto industry. It’s going to be one digital assets industry.
David Sacks, White House Crypto Advisor
Sacks said passage of a comprehensive market structure bill would create a single digital asset industry, rather than parallel banking and crypto sectors operating under different rules. He added that many banks have remained cautious due to uncertainty over how regulators would oversee crypto-related activities.
Negotiations around the CLARITY Act have stalled largely due to disagreements over stablecoin yield, which has emerged as the most contentious provision in the proposed legislation. Crypto firms have pushed to offer yield on stablecoins, while banks have argued this could undermine traditional deposit models.
Related: Scaramucci, Armstrong, Warn Stablecoin Yield Ban Hands China a Strategic Edge
Calls for Compromise Intensify
Sacks said compromise is necessary to move the bill forward, warning that banks risk losing leverage if talks collapse. He argued that stablecoin rewards could persist under current law even without new legislation, making negotiation preferable to inaction.
At the same time, Sacks said crypto advocates should prioritise achieving a broader regulatory framework rather than focusing solely on yield provisions. He described the legislative process as iterative, pointing to the GENIUS Act, which failed multiple times before becoming law.
Sacks acknowledged concerns about uneven oversight, stating that similar financial products should be subject to consistent regulation regardless of whether they are offered by banks or crypto firms. He said any final agreement would likely require concessions from all sides.
Related: Analyst: Why Chainlink Matters More Than Most Investors Realise
The post White House Crypto Czar: Banks and Crypto Will Merge Into One Industry appeared first on Crypto News Australia.
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