The long-standing divide between traditional banks and the crypto world may soon disappear, according to White House crypto advisor David Sacks. In a recent interview, Sacks said that banks, stablecoins, and cryptocurrencies are on track to merge into one unified digital asset industry as U.S. regulations become clearer.
Sacks believes that once comprehensive crypto market structure laws are passed in the United States, banks will enter the crypto space in a major way. At that point, the line separating traditional finance from blockchain-based systems could fade quickly. In his view, stablecoins will become a core financial product used by both crypto-native companies and established banks.
One of the biggest debates in Washington right now is whether stablecoin issuers should be allowed to pay yield to users. Many banks oppose the idea, worried that yield-bearing stablecoins could compete directly with traditional savings products. But Sacks warned that this resistance may not work in the long run.
He pointed out that current legal frameworks, including the proposed GENIUS Act, already include mechanisms that allow issuers to generate returns. Even if banks push back, some form of yield is likely to exist. According to Sacks, banks that refuse to adapt risk losing ground as crypto firms move ahead under existing laws.
Over time, he expects banks to change their position. Once financial institutions begin offering stablecoins themselves, yield could shift from being a threat to becoming a competitive advantage. In a fully developed digital asset market, yield-bearing stablecoins may become a standard feature rather than a controversial one.
Sacks also tied crypto growth to broader technology trends. He spoke about rising competition between the United States and China in artificial intelligence and semiconductor development. China, he said, is focusing heavily on self-sufficiency by building its own technology ecosystem, led by domestic firms such as Huawei.
The U.S. approach has allowed China access to older chip technology in an effort to slow Huawei’s expansion by winning market share. But Sacks admitted this strategy may lose effectiveness as China becomes less dependent on foreign suppliers.
On regulation, Sacks contrasted different political approaches. He argued that under Donald Trump, the technology sector faced less regulation and stronger support, which allowed faster progress in both crypto and AI. In comparison, he said heavier regulation under the Biden administration has slowed innovation.
Sacks even touched on geopolitics, noting that U.S. interest in Greenland goes back about 150 years. He said Trump simply revived a long-standing idea rather than introducing a new concept.
Overall, Sacks sees U.S. crypto policy moving toward integration instead of separation. As rules become clearer and institutions step in, digital assets may no longer be viewed as an alternative financial system. Instead, crypto, stablecoins, and banks could form the foundation of modern finance — with yield-bearing stablecoins acting as a key driver of change.
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