White House crypto czar speaks out: Banks entering crypto is no longer a hypothesis, but a policy certainty

David Sacks, as the White House’s first AI and Cryptocurrency Director, recently stated that after the passage of the Market Structure Act for cryptocurrencies, banks will fully enter the crypto space. This is not just a polite remark but a policy signal from the power center. When those who hold regulatory authority make such judgments, it signifies that changes are underway.

The Underlying Logic Behind the Policy Signal

The Significance of Sacks’ Role

David Sacks currently serves as the White House AI and Cryptocurrency Director, a position that grants him core influence in shaping crypto policy. From recent discussions on the All-In Podcast, it’s evident that he not only participates in policy design but also promotes consensus among top Silicon Valley investors. This means his statements often represent policy directions rather than just personal opinions.

The Key Role of the Cryptocurrency Market Structure Act

The Market Structure Act is the key to opening the banking sector to cryptocurrencies. Such legislation typically clarifies the legal status of crypto assets, trading rules, and risk management frameworks, providing compliant pathways for traditional financial institutions. Once this bill passes, banks no longer need to worry about legal risks; entering the crypto space shifts from an “option” to a “necessity.”

Why Now

The Policy Environment Is Mature

According to the latest news, top Silicon Valley investors and policymakers are generally optimistic about the economic outlook for 2026, expecting GDP growth of 5-6%. With such growth expectations, the government is motivated to push forward reform policies, and the improvement of the crypto regulatory framework is a key part of this.

The Practical Needs of Banks

Traditional banks face obvious challenges: the crypto market size has become substantial, yet they are kept on the sidelines. Once policies permit, banks entering crypto is not because they are overly optimistic but because they can no longer afford to miss this market. It’s a rational choice driven by necessity.

Methods and Timeline for Entry

Possible Pathways for Entry

• Establish dedicated crypto asset custody departments
• Provide clearing and settlement services for crypto exchanges
• Launch crypto-related derivatives and financial products
• Directly hold and trade crypto assets

Expected Timeline

Sacks’ remarks imply that this process will not be slow. After policy approval, the first wave of banks could start pilot programs within months rather than waiting for years. What this means for the entire crypto ecosystem warrants reflection.

Potential Market Impact

Significant Increase in Liquidity

The entry of banks could channel trillions of dollars into the crypto market. This is not speculative capital but institutional-level long-term allocation. The increase in liquidity will directly boost market size and asset prices.

Institutionalization of the Ecosystem

Bank participation will promote the institutionalization of the crypto market. It will evolve from a market dominated by individual investors to one led by institutional investors. During this process, market volatility may decrease, but the structure will become more complex.

Further Regulatory Improvements

With banks entering, regulators will face increased pressure from traditional finance to establish more comprehensive risk management frameworks. This could lead to crypto market regulation resembling that of traditional financial markets more closely.

Notable Details to Watch

According to the All-In Podcast discussion, Sacks and major Silicon Valley figures are generally optimistic about the overall crypto market in 2026. They are bullish on the explosion of prediction markets like Polymarket. Behind this optimism largely lies expectations of improved policy environments. Sacks’ recent statement can be seen as a confirmation of these expectations.

Summary

The full entry of banks into the crypto space is no longer just an industry ideal but an inevitable trend under policy certainty. Sacks’ voice as the White House crypto chief essentially gives an official seal of approval to this process. 2026 could become a pivotal year for the true integration of traditional finance and the crypto market. The key is to monitor the specific progress of policy implementation and the strategies of the first banks entering the market. These details will directly influence the next evolution of the crypto market.