David Sacks says the crypto industry has already made serious compromises, and now he believes banks must respond. Speaking at a White House briefing on February 28, David Sacks highlighted growing tensions between crypto companies and traditional banks. He explained that crypto firms have already adjusted key revenue programs, and it is now time for banks to show flexibility as well.
The main point of conflict is stablecoins. These are digital tokens tied to the U.S. dollar. Many crypto platforms let users earn returns by holding or lending these tokens. These yield programs have become a major source of income for the industry. However, banks argue that they resemble traditional interest-bearing savings accounts and create direct competition. Therefore, banking groups have pushed lawmakers to limit these features.
David Sacks Calls for Balanced Regulation
David Sacks emphasized that the crypto sector has already made “meaningful concessions.” For instance, some companies reduced or restructured their yield programs, while others paused certain products. These steps aim to reduce financial risk and ease concerns from banks. Consequently, Sacks urged banks to also show willingness to compromise. He stressed that innovation should continue and should not be blocked to protect old systems.
Stablecoin Yield Programs Under Pressure
Furthermore, stablecoin yield programs are at the center of current regulatory discussions, as David Sacks said. Lawmakers are debating the CLARITY Act, which seeks to create clear rules for digital assets. Crypto supporters argue that clear legislation will help companies operate responsibly and grow in the United States. Meanwhile, banks insist on strict rules to protect their customers and reduce risks. Therefore, both sides are negotiating to find a workable balance.
David Sacks Envisions Banking and Crypto Integration
In addition, David Sacks envisions a future where banks and crypto firms work together rather than against each other. Recent White House meetings have brought both sides to the table to discuss shared goals. Sacks also disclosed that he sold around $200 million in crypto holdings before taking his advisory role to avoid conflicts of interest. Ultimately, he wants compromise to run both ways so that the financial system can modernize safely.
For now, negotiations continue. If both banks and crypto firms cooperate, the U.S. could create a more unified and innovative financial system. However, both sides must make concessions for lasting progress.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Bloomberg Survey: Economists Expect Fed to Cut Rates Twice This Year, Nearly One-Third Express Concerns About Waller
According to a Bloomberg survey, economists have pushed back the timing of the Federal Reserve's rate cuts from March to June, with an expectation of two rate cuts before the end of the year. Concerns about Walsh as the pick for the new chair have increased, with the survey showing economists expect year-end rates to be between 3% and 3.25%.
GateNews10m ago
Mitsubishi UFJ: Iran conflict prompts oil price surge that may spur rate hikes from some central banks, Australian dollar stands out
Mitsubishi UFJ analysts point out that the oil price surge triggered by the Iran conflict may prompt some central banks to raise rates, but rate hikes amid weak economic conditions are unfavorable for currencies. The Reserve Bank of Australia is expected to raise rates by 25 basis points, with the Australian dollar becoming one of the best-performing G10 currencies.
GateNews51m ago
US Senate Passes CBDC Digital Dollar Ban! Funds Turn to LiquidChain for Omnichain Liquidity Deployment
The U.S. Senate passed the "21st Century Housing Act," which prohibits the Federal Reserve from issuing a digital dollar, with restrictions lasting until 2031, reflecting concerns about financial surveillance and personal privacy. Despite opposition from the House of Representatives and political uncertainties, decentralized finance platforms like LiquidChain are seizing market opportunities to drive liquidity innovation.
ChainNewsAbmedia2h ago
Middle East Conflict Pushes Up Oil Prices, U.S. Inflation Expectations Warm, Fed Rate Cut Outlook Under Pressure
Middle East conflict escalation drives oil price increases, raising U.S. short-term inflation expectations and affecting Federal Reserve rate-cut prospects. The one-year breakeven inflation rate reached 4.62%, while the two-year rate stands at 3.18%. High oil prices may make it difficult for the Federal Reserve to cut rates, with the probability of no rate cuts in 2026 expected to rise to 44.7%.
GateNews3h ago
Citi: Next Week's "Super Central Bank Week" May Intensify Bond Market Volatility
Citi strategist Jamie Searle stated that uncertainty surrounding the reopening of the Strait of Hormuz has made short-term bond yields vulnerable. Central bank policy meetings expected next week are anticipated to exacerbate market volatility, with the ECB potentially considering a preemptive rate hike, while the Bank of England is likely to remain cautious.
GateNews3h ago
New York gold futures fell below $5,100, poised to record a weekly decline this week
Gate News report: On Friday, March 13, New York gold futures (NYMEX gold) fell below $5,100 per ounce, with the week poised to record a weekly decline. A stronger US dollar, rising oil prices, and uncertainty surrounding Federal Reserve policy are putting pressure on gold prices. Analysts from Australia and New Zealand Banking Group stated: "The US dollar strengthens due to its safe-haven status, particularly as rising oil prices benefit the United States as a net energy exporter. Market concerns about the Federal Reserve's interest rate cut path are intensifying, and rising oil prices increase the likelihood of inflation pressures re-emerging."
GateNews3h ago
