The divide between traditional banking and crypto may not last much longer. According to David Sacks, the White House AI and Crypto Czar, the United States is approaching a turning point where banks and crypto firms will no longer operate as rival systems, but as one unified digital asset industry.
Sacks shared this view during an interview on CNBC’s Squawk Box, recorded on Wednesday, January 21, alongside the World Economic Forum in Davos, Switzerland. His remarks arrive at a critical moment, as lawmakers, banks, and crypto companies battle over the final shape of US crypto regulation.
At the center of the debate is the proposed CLARITY Act, a long-awaited market structure bill designed to define how digital assets and stablecoins should operate in the US financial system.
Why this moment matters for crypto and banks
Sacks believes the approval of the CLARITY Act would act as a catalyst. Once passed, he argues, banks would fully enter the crypto space, erasing the boundary between traditional finance and blockchain-based firms.
In his words, the future does not involve parallel systems. Instead, banking and crypto would converge into a single digital asset industry, with stablecoins, tokenized assets, and regulated financial institutions operating under the same framework.
This matters because regulatory clarity has been the single biggest barrier keeping major banks from deeper crypto involvement. Without clear rules, most large institutions have stayed cautious, limiting crypto exposure to custody pilots or blockchain experiments.
Banks push back as competition fears grow
The path forward is far from smooth. Sacks’ comments come as banks have intensified lobbying efforts to protect their business models. The American Bankers Association, the main trade group for US banks, disclosed spending more than $2 million in its final 2025 lobbying report, including efforts tied directly to the CLARITY Act.
Banks are attempting to add language to the bill that would prevent stablecoins from offering yield, a feature crypto firms argue is essential to innovation. From the banking side, the concern is clear. If stablecoins offer attractive returns, customers could move funds away from low-interest savings accounts, putting pressure on bank margins.
This clash explains why the legislation has stalled, despite months of support from the crypto industry.
Sacks urges compromise over perfection
When asked about the delays surrounding the CLARITY Act, Sacks acknowledged that the debate over stablecoin yield has slowed progress. Still, he urged lawmakers and industry leaders to focus on the bigger picture.
He pointed out that the GENIUS Act faced similar resistance before eventually becoming law. In July 2025, that bill prohibited token issuers from directly offering stablecoin yields. However, it still allowed third-party firms such as Coinbase to legally provide rewards, creating a workaround that preserved innovation without fully sidelining banks.
Sacks stressed that yield is already addressed within existing legislation and should not derail the broader goal of establishing market structure. For him, passing the bill is more important than winning every policy detail.
Crypto industry fractures add uncertainty
The situation became more complicated last week when Coinbase withdrew support for the CLARITY Act. CEO Brian Armstrong publicly criticized the current version, saying it contained too many issues, including provisions he believes protect banks from competition while limiting stablecoin innovation.
This split within the crypto industry weakens its negotiating position at a time when banks are united and well-funded in Washington.
What happens if the bill passes
If the CLARITY Act is approved and sent to US President Donald Trump for signature, the long-term implications could be significant.
Banks would gain regulatory confidence to issue stablecoins, offer on-chain settlement, and integrate blockchain infrastructure into everyday financial products. Crypto firms, in turn, would gain access to traditional payment rails, compliance clarity, and institutional capital.
Over time, Sacks believes banks will come to appreciate yield-bearing stablecoins once they are participants rather than observers. That shift could redefine how savings, payments, and digital dollars work in the US economy.
For now, uncertainty remains. But one message from the White House is clear. Washington no longer sees crypto as an outsider. It sees it as the next evolution of banking itself.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions
