David Sacks, the U.S. White House AI and Crypto Czar appointed by President Donald Trump, said Wednesday that traditional banks are poised to fully enter the cryptocurrency industry once comprehensive market structure legislation is passed. In remarks to CNBC from the World Economic Forum in Davos, Sacks argued that the divide between banks and crypto firms will disappear as a unified digital-assets sector takes shape after the bill’s approval.
Sacks — who was named to his role in late 2024 with the mandate to help establish a legal framework for digital assets in the United States — emphasized that crypto and banking are on a collision course toward integration rather than separation. “After market structure passes, the banks are going to get fully into the crypto industry,” he said. “We’re not going to have a separate banking industry and crypto industry — it’s going to be one digital-assets industry.”
Bank Participation Seen as Industry Turning Point
Sacks framed his prediction in the context of ongoing negotiations over the crypto market structure bill, a high-profile piece of legislation under consideration by Congress aimed at establishing clear rules for digital asset markets, including oversight, consumer protection and how stablecoins will be treated. The bill has faced delays and contentious debates — particularly around stablecoin yield provisions — but momentum for passage remains elevated in both chambers of Congress.
He has been vocal in urging both the banking sector and crypto industry to reach compromises on contentious issues to ensure the bill can be delivered to President Trump’s desk. One such debate centers on whether stablecoin issuers can pay yield or rewards to holders — a point of friction between traditional banks, which argue such programs could draw deposits away from the banking system, and crypto firms, which view yield as a competitive offering.
Why Banks Might Shift Toward Crypto
Sacks suggested that banks’ hesitance to enter the digital-asset space has been largely tied to regulatory uncertainty and concerns about unequal treatment. Under the forthcoming legislation, which aims to clarify jurisdiction and harmonize rules, he believes banks will feel more confident participating in digital markets — not only as custodians or intermediaries but as full players in products such as stablecoins, custody, tokenized assets and blockchain-based services.
“I bet you over time the banks like the idea of paying yield because they’re going to be in the stablecoin business,” Sacks said, indicating a shift in strategic thinking. If traditional firms can compete in the stablecoin and yield spaces, they may increasingly absorb functions previously dominated by fintech and crypto-native firms.
Integration of Banking and Crypto
Industry analysts say Sacks’ comments reflect a broader view that regulatory clarity is key to institutional adoption. Clear legal frameworks — particularly around market structure and stablecoin regulation — could lower barriers for banks to offer digital asset services and integrate crypto into existing financial products. This could accelerate the convergence of traditional finance (TradFi) and crypto markets that some have predicted for years.
However, not everyone agrees that integration will be smooth. Some banking leaders and policymakers still warn that crypto’s risk profile — including volatility, consumer protection concerns, and potential impacts on deposit funding — warrants cautious engagement. The final shape of the market structure legislation and related regulatory frameworks will play a decisive role in determining how deeply banks dive into crypto.
Looking Ahead
With legislative text from the U.S. Senate Agriculture Committee expected soon and ongoing discussions in the Senate Banking Committee, momentum toward passing a market structure bill remains active, even amid disagreements. Multiple stakeholders — from regulators to industry leaders — are watching developments closely, with the possibility that a unified regulatory regime could reshape the landscape for both banking and digital-asset markets soon.
Summary:
- David Sacks predicts banks will fully embrace crypto once market structure legislation passes.
- He says banking and crypto sectors could merge into a “one digital-assets industry.”
- Stablecoin yield and regulatory clarity are key points in ongoing legislative negotiations.
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