David Sacks Says Banks Will Enter Crypto After Rules Pass

• David Sacks said banks will enter crypto after Congress passes market structure rules, merging traditional finance and digital assets.
• Sacks noted banks want to issue stablecoins but await legal clarity, saying regulation, not technology, is holding back adoption.
• Stablecoin yield disputes are delaying the CLARITY Act, but Sacks urged compromise to unlock bank participation in crypto.

David Sacks, the White House crypto and AI advisor, said U.S. banks will fully enter crypto after market structure legislation passes. He made the remarks during a CNBC interview on January 21 in Davos. Sacks said banks, crypto firms and regulators are waiting on rules, not technology, to reshape how digital assets operate within finance.

Market Structure Bill Seen as Trigger for Bank Entry

According to David Sacks, market structure legislation will erase the divide between traditional banking and crypto firms. He said banks will not remain separate once Congress approves the framework. Instead, both sectors would operate as a single digital assets industry.

Sacks explained that regulatory clarity would allow banks to issue stablecoins and compete directly with fintech and crypto companies. He noted that current hesitation reflects legal uncertainty, not operational limits. Therefore, he said clear laws would unlock broader participation across the financial system.

He added that banks already understand crypto demand but require consistent oversight rules. Once Congress acts, Sacks expects bank attitudes toward digital assets to evolve quickly.

Stablecoin Yield Dispute Slows Legislative Progress

However, negotiations remain stalled over whether stablecoins should pay yield. Banks oppose allowing yield, while crypto firms support competitive rewards. This disagreement has delayed the CLARITY Act, the core market structure bill.

Sacks urged both sides to compromise. He warned banks that existing law already allows certain reward structures. Moreover, he said failure to reach agreement could leave banks with fewer protections later.

He also encouraged crypto advocates to prioritize passing the broader framework. Sacks said yield matters, but passing market structure legislation matters equally. He described compromise as necessary to move the bill forward.

Banks, Regulators and Political Pressure Converge

Sacks acknowledged concerns from banks about uneven regulation. He said similar products should face similar rules across industries. Harmonization, he said, remains a central goal of the legislation.

He compared the current stalemate to the GENIUS Act, which faced repeated setbacks before passing in July 2025. That law regulated stablecoins and increased institutional participation.

The American Bankers Association has intensified lobbying, spending over $2 million in 2025, including efforts tied to the CLARITY Act. Meanwhile, Coinbase recently withdrew support, citing unresolved stablecoin reward provisions.

Despite delays, Sacks reiterated that banks will move into crypto once Congress finalizes market structure rules.