U.S. Banks Will Embrace Crypto and Stablecoins with New Legislation, Says David Sacks

TLDR

• David Sacks believes U.S. banks will embrace crypto and stablecoins once market structure legislation is passed.
• Sacks predicts the merging of the traditional banking and crypto industries into one unified digital assets sector.
• Banks have been hesitant to engage with crypto due to regulatory uncertainties, but new legislation may ease concerns.
• Stablecoins will offer U.S. banks the opportunity to compete with fintech firms by offering yields to customers.
• Sacks emphasizes the need for balanced regulation between banks and crypto firms to ensure fair competition.

White House AI and crypto advisor David Sacks predicted that U.S. banks will eventually adopt cryptocurrencies, especially stablecoins, once new legislation reshapes the market. Sacks believes that the divide between traditional banks and crypto firms will fade as Congress passes market structure rules currently under development.

Banks and Crypto to Merge into One Digital Asset Industry

David Sacks emphasized that the future of the U.S. financial system will be one unified digital assets industry. “We’re not going to have a separate banking industry and crypto industry. It’s going to be one digital assets industry,” Sacks stated during a CNBC interview.

He believes that, as the government develops regulations for the crypto sector, institutions will start participating in the crypto markets. Many U.S. banks have been hesitant to engage with cryptocurrencies, primarily due to regulatory uncertainties. Recent legislative developments, such as the 2025 passage of the GENIUS Act, have helped provide clarity, particularly regarding stablecoins. The bill, aimed at regulating stablecoins, has led to new rules for cryptocurrencies, which may ease banks’ concerns.

Stablecoins and Yield Will Attract U.S. Banks

Sacks pointed out that stablecoins could be a game-changer for banks, offering an opportunity to pay yield and compete with fintech firms. “I bet you over time the banks like the idea of paying yield because they’re going to be in the stablecoin business,” he said. As crypto firms provide yields for stablecoin holders, Sacks believes that banks will follow suit to remain competitive in the financial market.

However, banks remain concerned about uneven regulation in the crypto space. Currently, crypto firms face lighter regulations compared to traditional banks, which has led to some resistance. Sacks agreed, noting that “everyone offering the same product should be regulated in the same way.”

The new legislation currently being crafted aims to ensure that banks and crypto firms face balanced regulation. According to Sacks, the forthcoming laws will bring equilibrium to the sector. “A good compromise leaves everyone a little bit unhappy,” he added, implying that all stakeholders will need to make concessions for the greater good of the financial ecosystem.

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