White House crypto adviser David Sacks said banks and crypto firms will ultimately merge into a single digital asset industry once market structure legislation passes.
Sacks made the comments during an interview at the World Economic Forum in Davos while discussing stalled US crypto legislation.
He said disputes over whether stablecoins should be allowed to offer yield have become the main obstacle to advancing the CLARITY Act.
“A good compromise is everyone leaves a little bit unhappy,”
David Sacks said.
Sacks said lawmakers, banks, and crypto firms must find common ground to deliver a bill for President Donald Trump to sign.
He cited the GENIUS Act as an example of legislation that initially failed before eventually becoming law.
Sacks urged crypto companies to focus on the broader benefits of a market structure bill rather than a single policy issue.
“After the bill passes, the banks are going to get fully into the crypto industry, so it’s going to be one digital asset industry,”
David Sacks said.
He added that banks may eventually support yield once they become active participants in stablecoin issuance.
Tensions escalated last week after Coinbase withdrew support for the CLARITY Act.
“There were too many issues with the current draft, including eliminating stablecoin yields while insulating banks from competition,”
Brian Armstrong said.
Banks argue that allowing yield-bearing stablecoins could trigger deposit outflows from traditional savings accounts.
Armstrong said stalled legislation creates an opportunity to renegotiate terms with banking leaders.