Banks to Fully Enter Crypto After U.S. Law Passes

White House official says U.S. banks will fully enter crypto after market structure law passes, following remarks made live at Davos 2026.

At the 2026 World Economic Forum in Davos, David Sacks, the White House’s crypto czar, announced that banks are preparing to fully adopt cryptocurrency.

He confirmed that once the U.S. market structure bill is passed, banks will begin significant involvement in the crypto space.

This marks a major shift, as regulatory uncertainty has long kept major financial institutions on the sidelines. With the passing of the bill, this uncertainty will be removed, allowing banks to step into the market.

The CLARITY Act: Setting the Stage for Bank Involvement

The CLARITY Act, introduced in 2024, aims to establish a clear regulatory framework for digital assets.

One of its main objectives is to clearly define which digital assets are securities and which are commodities.

This clarity would allow banks to better navigate the crypto market, providing them with the confidence to get involved.

Previously, banks hesitated to invest in cryptocurrency due to unclear regulations. As David Sacks pointed out, the lack of a defined regulatory structure was a major concern.

With the CLARITY Act, banks will have a clear understanding of how digital assets are classified and regulated, allowing them to take action without fear of running into compliance issues.

The legislation also includes provisions for custodial standards and market conduct, making it easier for banks to safely handle digital assets.

This will ensure that banks can offer services like custody and trading without worrying about fraud or manipulation.

In turn, these measures will help build trust among both institutional investors and regular consumers.

How the CLARITY Act Eases Bank Concerns

Before the CLARITY Act, many banks were wary of the risks involved in cryptocurrency markets.

A 2024 survey showed that 87% of bank CEOs identified unclear regulations as the main barrier to adoption.

The new legislation directly addresses this issue, creating a stable environment for financial institutions to operate.

By setting clear standards for digital asset classification, the bill ensures that both the SEC and the CFTC will have defined roles.

This reduces the chances of regulatory confusion and jurisdictional conflict. As a result, banks will have a clearer path to enter the cryptocurrency space and offer their services to customers.

The legislation also addresses consumer protection. It ensures that crypto markets will follow anti-fraud and anti-manipulation rules, providing more security for investors.

This is crucial for banks, as they need to meet high standards for customer safety and compliance.

Potential Changes in Cryptocurrency Markets

Once banks begin fully participating in the crypto market, it could lead to more stability.

Institutional investment would likely result in increased liquidity and lower market volatility. This could make the crypto market more appealing to traditional investors and businesses.

Banks will also bring established financial infrastructure, which could lead to better consumer protections.

Many banks have the experience and resources to implement strong security measures, something that could benefit the entire crypto ecosystem.

Consumers could feel more confident knowing their assets are protected by the same standards applied to traditional banking.

However, there are concerns that the entry of large banks could lead to centralization.

Some crypto enthusiasts worry that big financial institutions could undermine the decentralized nature of blockchain.

Despite these concerns, many experts believe that competition and regulation will help balance these forces and ensure a healthy market.

Related Reading: Trump’s Crypto Advisor Warns: Pass Bill Now

U.S. Regulatory Push and Global Competition

The U.S. is not the only country working on establishing clear crypto regulations.

In 2024, the European Union implemented the Markets in Crypto-Assets (MiCA) regulation, while the U.K. set up its own crypto framework in 2023.

As other countries develop their own regulatory standards, there is growing pressure on the U.S. to follow suit.

If the CLARITY Act is passed, the U.S. could regain its position as a leader in the global digital asset market.

The regulatory clarity provided by the bill would encourage both traditional financial institutions and crypto-native companies to expand operations within the U.S.

This would likely lead to new jobs, increased tax revenue, and stronger economic growth in the sector.

David Sacks’ statement and the proposed legislation highlight a key shift in U.S. financial policy.

The country is moving toward creating a clearer and more structured environment for cryptocurrencies. If the legislation passes, it will mark a new era of banking and finance.