White House Crypto Czar says banks and crypto will merge into one industry

The White House AI and Crypto Czar, David Sacks, shared his belief that a point will come when banks and crypto firms will join forces to form a single digital asset industry. According to him, this move will be observed as soon as the long-awaited market structure bill receives a go-ahead from Congress.

Sacks released this statement during an interview on CNBC’s Squawk Box. Notably, this interview coincided with the World Economic Forum (WEF) in Davos, Switzerland, which was held on Wednesday, January 21. 

Sacks’ comments come as banks have launched a last-minute lobbying push to protect their margins and limit competition by blocking crypto from replicating their business model. They are attempting to insert new language into the Clarity Act, stablecoin legislation that the crypto industry has supported for months, to close this potential loophole.

In its final lobbying disclosure for 2025, the American Bankers Association—the main trade group for the banking industry—reported spending over $2 million, including efforts related to the Clarity Act.

Sacks argued that the crypto industry should support the CLARITY Act to be approved soon 

Following Sacks’ remarks, reporters reached out to the US official to request a comment on the progress of the proposed CLARITY Act, which has been postponed amid heated debate over whether it is wise to allow stablecoin issuers to provide yield. In response to this request, the crypto leader began by admitting that the ongoing debate is stalling the legislation.

Afterwards, Sacks called on lawmakers, banks, and crypto companies to find common ground to pass the market structure bill and send it to US President Donald Trump for a signature to become law.

However, he pointed out that he was not shocked to see the bill facing hardships, arguing that the GENIUS Act also encountered several challenges but later became law. Still, the crypto leader released a statement addressed to banks, claiming that they need to understand that yield is already accounted for in current legislation. 

For the crypto industry as a whole, Sacks urged a broader, strategic view of the current situation, asserting that getting the market structure bill approved is just as crucial as yield and that it should be the industry’s main focus.

To break this point down, he mentioned that, “Once this bill passes, banks will fully enter the crypto field. We won’t have separate banking and crypto sectors; instead, there will be one digital asset industry. Over time, banks will appreciate offering yield since they’ll be involved in stablecoins.” 

Uncertainties surround the CLARITY Act

Debates between traditional banks and crypto firms over whether it is advisable to permit stablecoins to earn interest have heated up for several months now. Last week, the situation intensified when Coinbase announced it would drop support for the CLARITY Act.

This was after Brian Armstrong, CEO of Coinbase, shared an X post claiming that, “there were too many problems with the current version of the bill, including its aim to stop stablecoins from offering yields while protecting banks from competition.”

At this moment, banks cautioned that if, by any chance, stablecoins receive the go-ahead to offer high interest rates, individuals exploring the crypto sector might be forced to shift their focus away from traditional bank accounts. This move is set to bring about significant losses from low-interest savings accounts. 

Meanwhile, it is worth noting that after the United States GENIUS Act was approved in July 2025, the bill halted token issuers from providing stablecoin yields. Even with this halt in place, third-party firms such as Coinbase have been permitted to legally offer rewards. 

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