White House Crypto Advisor David Sacks: Banks and Crypto Will Merge into a "Digital Asset Industry"

White House cryptocurrency and artificial intelligence advisor David Sacks recently stated that once the Market Structure Act passes, the US banking industry will widely adopt cryptocurrencies, especially stablecoins. He predicts that the boundaries between banks and the crypto industry will eventually disappear, and the two sectors will merge into a unified “digital asset industry.” This remark reflects a shift in US policy attitudes toward the crypto industry and also signals the potential for deep integration between traditional finance and digital assets.

Current Cautious Attitudes and Policy Barriers

Uncertainty caused by unclear regulations

Sacks pointed out that many large banks are currently cautious about cryptocurrencies mainly because the regulatory framework is not clear enough. As highly regulated institutions, banks find it difficult to enter a new and emerging field without explicit legal guidance. This cautious attitude is a rational business decision rather than a rejection of crypto technology itself.

The critical role of legislation

Once the Market Structure Act is passed, it will provide a clear legal framework for institutional participation in the crypto space. The emergence of this framework will eliminate the biggest obstacle for banks entering crypto—uncertainty. According to Sacks, clear rules themselves are a green light, enough to stimulate banks’ enthusiasm for participation.

The Real Motivation for Banks to Enter Crypto

Stablecoins: a new tool for generating yields

Sacks believes that banks may see issuing stablecoins as a way to generate returns and compete with fintech companies. This judgment is insightful. Currently, fintech firms attract user funds by offering high-yield products, causing traditional banks to lose competitiveness. Stablecoin operations provide banks with a new source of revenue and also help them compete with emerging financial service providers.

From opposition to acceptance

Interestingly, the banking industry is currently lobbying against allowing companies to offer stablecoin yields. But Sacks predicts that in the future, banks themselves will tend to pay yields through stablecoin operations. This reflects a common industry phenomenon: when new technology becomes an irreversible trend, former opponents often embrace it first. The shift in banks’ attitude indicates that stablecoins are no longer niche products in crypto but are about to become part of mainstream financial infrastructure.

Long-term Significance of Industry Integration

From “two industries” to “one industry”

Sacks’ forecasted integration into a “digital asset industry” means that the boundaries between traditional banking systems and the crypto ecosystem will gradually blur. This is not just banks adding a new business line but a deeper structural transformation. When banks fully enter crypto—offering stablecoins, digital asset custody, and related services—the distinction between traditional finance and digital finance will become meaningless.

The importance of policy environment

Whether this integration can be realized depends critically on the advancement of legislation like the Market Structure Act. According to relevant information, Sacks, as the White House’s first “AI and Cryptocurrency Czar,” plays a significant role in policy promotion. ARK founder Cathie Wood specifically mentioned in her 2026 forecast that it is through the efforts of policymakers like Sacks that the US economy can benefit from deregulation policies, which are essential for the development of the crypto industry.

Market Outlook

Based on Sacks’ views, in the coming years, we may see:

• The Market Structure Act passed, with mainstream banks gradually entering crypto
• Stablecoins becoming a standard financial product for banks
• Increased cooperation and mergers between traditional financial institutions and crypto companies
• Gradual improvement of regulatory frameworks related to digital assets

These changes will not happen overnight, but the establishment of clear policy frameworks will greatly accelerate this process.

Summary

David Sacks’ prophecy essentially reflects a growing reality: the crypto industry has reached a stage where it can no longer be ignored by traditional finance. Clarifying rules will open the door, and banks’ entry will speed up integration, ultimately creating a larger and more mature digital asset market.

The key turning point is the passage of the Market Structure Act. Once this act becomes law, the integration of banks and the crypto industry will no longer be a prediction but an inevitability. For market participants, the next focus should be on the progress of this legislation and which large banks will be the first to enter the crypto space.