TLDR
- David Sacks predicts that U.S. banks will eventually adopt cryptocurrencies, especially stablecoins.
- Sacks believes the divide between traditional banks and crypto firms will disappear once new market structure rules are established.
- The GENIUS Act, passed in July 2025, regulates stablecoins and paves the way for greater institutional participation in the crypto market.
- Sacks sees stablecoin issuance as a potential way for banks to offer competitive yields and challenge fintech firms.
- Banks have raised concerns about uneven regulatory oversight between crypto firms and traditional financial institutions.
David Sacks, the White House crypto and AI advisor, has stated that U.S. banks will eventually adopt cryptocurrencies, especially stablecoins. He believes this shift will occur after new legislation reshapes how the sector is regulated. According to Sacks, the divide between traditional banks and crypto firms will disappear once Congress finalizes market structure rules currently in development.
David Sacks Predicts Merging of Banks and Crypto
David Sacks emphasized that the future of finance will no longer feature separate banking and crypto industries. He predicts that the growing acceptance of digital currencies, particularly stablecoins, will lead to the merging of these two sectors.
“We’re not going to have a separate banking industry and crypto industry. It’s going to be one digital assets industry,” Sacks said during a CNBC interview.
Stablecoins, cryptocurrencies pegged to the value of fiat currencies, could play a pivotal role in this transition. As traditional banks increasingly explore stablecoin adoption, they may begin to offer competitive yields, challenging fintech firms. This shift reflects a broader trend where banks are becoming more open to digital currencies, provided clear regulations are established.
The GENIUS Act and Institutional Participation
The passing of the GENIUS Act in July 2025 marked a pivotal moment for institutional adoption of cryptocurrencies. The bill primarily regulates stablecoins, offering a clearer framework for the market. With further legislative work underway, lawmakers are now focused on developing a bill to define how federal regulators will oversee cryptocurrency markets.
This development is expected to boost institutional participation in the crypto market. However, the sector faces challenges, including potential competition between crypto market players and traditional banks, particularly regarding stablecoin yield. While banks have historically been cautious about engaging with cryptocurrencies due to regulatory risks, the GENIUS Act aims to address some of these concerns and foster wider adoption.
Stablecoin Yield and the Banks’ Future Role
Sacks also discussed the increasing competition between banks and crypto firms over stablecoin yield. As more banks explore stablecoin issuance, they could use it as a tool to offer attractive yields to customers. This could help them compete with fintech companies that already provide high-interest products.
However, banks have expressed concerns about uneven regulatory oversight between crypto firms and traditional financial institutions.
“Everyone offering the same product should be regulated in the same way,” Sacks stated.
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