Crypto Czar David Sacks Foresees One Digital Asset Industry

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Banks and Crypto Move Toward Convergence

White House crypto and AI advisor David Sacks said U.S. banks will adopt cryptocurrencies as Congress advances market structure legislation, signalling a future where banking and crypto operate as one industry. Speaking in a CNBC interview, Sacks said banks and crypto firms will no longer operate separately once lawmakers set clear federal oversight rules for digital assets.

Sacks said Congress is shaping rules that will erase the divide between banks and crypto firms. He said the sector will merge into one digital assets industry. “We’re not going to have a separate banking industry and crypto industry,” Sacks said. “It’s going to be one digital assets industry.”

Due to the uncertainty of the regulations, a large number of U.S. banks adopted a conservative approach for a long period. This policy changed with the passage of the GENIUS Act in July 2025, which primarily aimed to regulate stablecoins.

Stablecoins at the Center of Legislative Tensions

The legislators now concentrate on passing comprehensive market structure legislation that states the role of federal regulators in regulating cryptocurrency markets. This movement has sparked debates about stablecoin earnings.

Sacks said stablecoins could help banks compete with fintech firms. He said banks may eventually welcome yield as part of stablecoin issuance. “I bet you over time the banks will like the idea of paying yield,” Sacks said, adding that banks will participate directly in stablecoins.

Political Pressure and Industry Pushback

U.S. President Donald Trump stated that he hopes to sign major crypto legislation soon. He spoke at the World Economic Forum in Davos. “Congress is working very hard on crypto market structure legislation,” Trump said. “Bitcoin, all of them, which I hope to sign very soon.” Momentum slowed after a certain compliance platform withdrew support. The Senate Banking Committee then delayed a key hearing amid negotiations.

Oversight Concerns and the Search for Balance

Banks have raised concerns about uneven oversight, noting that crypto firms often face lighter regulation. Sacks said identical products should face identical rules.

“Everyone offering the same product should be regulated in the same way,” he said. He added that compromise remains essential. “A good compromise leaves everyone a little bit unhappy,” Sacks said, while noting similar resistance surrounded the GENIUS Act before its passage.

Industry Stakes as Debate Intensifies

Sacks urged crypto firms to prioritize the passage of the market structure bill. He said the bill matters as much as yield debates. “Once this bill passes, banks will fully enter the crypto field,” he said. He added that ‘yield’ already exists in the current legislative language.

Tensions intensified after a certain compliance platform dropped support for the CLARITY Act. The platform’s leadership said the bill protected banks while limiting stablecoin yield.